A widely followed crypto analyst is sounding the alarm, claiming that the rest of 2024 will not be good for altcoins.
In a new video update, crypto strategist Benjamin Cowen shared with his 813,000 YouTube subscribers that based on historical patterns, altcoins appear set to enter a year-end downturn and capitulate to Bitcoin (BTC).
Cowen said the capitulation also coincided with the start of a new rate-cutting cycle.
“If you connect the dots from the previous cycle, 2018, 2019 to 2020, you can see that it hit this resistance three times and then the third time it hit this resistance became the bottom.
We know that this interest rate cycle, this business cycle has been going on a little bit longer and if you connect the dots again – one, two and three – the third touch of resistance could actually come at the end of the year and coincidentally if you look at the resistance when you connect the dots, it hits 0.25 in Q4, which is exactly what I predicted: alt/Bitcoin capitulation before the end of the year.”
So I think there is a case to be made that the alt/Bitcoin pair will simply reject at 0.4, they may still slightly overshoot this level, but ultimately I think they will reject and return to the lows before the year ends.
According to Cowen, altcoins will also continue to decline against the top crypto assets by market capitalization due to low global liquidity, which he believes is a big driver for digital assets.
“One of the factors to look at is what is causing this drop and arguably one of the main factors is net liquidity. So if you look at the global net liquidity approximation, you will see that it has actually been maintaining higher highs and lower lows for a while and actually if you overlay this chart with the alt/Bitcoin pair, you can clearly see that the alt/Bitcoin pair was in free fall at a time when net liquidity was also experiencing a fakeout.”
