Crypto strategist Benjamin Cowen says the power of the inventory market could decide the short-term way forward for all crypto property other than Bitcoin.
In a brand new technique session, Cowen tells his 784,000 YouTube subscribers that the risk-off stance that shares seem to have adopted might negatively affect altcoins if it continues.
A risk-off stance signifies that buyers are both staying on the sidelines or pulling out their capital.
Says Cowen,
“If the S&P 500 [index] stays risk-off for lengthy sufficient, which it tends to do in August or September of the pre-election 12 months, it may possibly result in Bitcoin going under the 20-week SMA (easy transferring common) and staying there in August or September of the pre-election 12 months, which might then, in flip, result in the capitulation of the altcoin market.
And if the altcoin market if TOTAL3 [the market cap of all cryptocurrencies except Bitcoin and Ethereum], can’t even be bothered to take out its October 2022 excessive in a risk-on surroundings, then after all it might go put in a brand new low in a risk-off surroundings.”
On when altcoins might flip bullish, Cowen says,
“The Bitcoin dominance is now above 50%. And I’ve mentioned many instances that altcoin accumulation, in my view, not monetary recommendation, ought to not likely begin till the Bitcoin dominance is at 60%. We’re not at 60%. Subsequently, I don’t suppose it’s time for the altcoin market.”
The Bitcoin (BTC) dominance (BTC.D) chart tracks the share of the whole crypto market cap that belongs to the crypto king.
Turning to Bitcoin, Cowen says that the flagship crypto asset faces an ominous future forward of the halving scheduled for April 2024.
“I feel there’s likelihood that Bitcoin will get that secondary scare. A whole lot of instances Bitcoin will get a secondary scare.
And in reality, in the event you have a look at each prior excessive by Bitcoin within the pre-halving 12 months, we have now at all times seen not less than a 40% to 50% correction earlier than the halving. At all times.”
At time of writing, Bitcoin is buying and selling for $28,587.
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