Extensively adopted crypto analyst Benjamin Cowen believes altcoins aren’t but accomplished trending down in opposition to Bitcoin (BTC).
In a brand new video, Cowen tells his 788,000 YouTube subscribers that the bearish pattern that altcoins are witnessing of their Bitcoin pairs is an everyday incidence forward of the halving.
“Bear in mind, in pre-halving years what occurs when Bitcoin pumps? It breaks altcoins off of their Bitcoin assist ranges in order that when Bitcoin goes again down, these altcoins simply merely have nowhere to cover. The altcoins simply proceed to get wrecked on their Bitcoin pairs and so they go decrease.”
The Bitcoin halving, which slashes BTC miners’ rewards in half, happens each 4 years and the subsequent one is slated for April 2024.
As an instance the extent to which altcoins have depreciated in opposition to the flagship crypto asset, Cowen exhibits the efficiency of Cardano versus Bitcoin (ADA/BTC) over the previous yr.
“Take a look at the ADA/BTC pattern right here. It strikes up, it then goes down and places in a brand new low. It strikes up after which goes down and places in a brand new low. It strikes up after which goes down and places in a brand new low. Like 40% drops roughly. And it simply retains taking place, it simply retains taking place.
You could pay attention to this pattern. it’s a brutal pattern.”
Cowen additionally explains why he believes that altcoins will proceed to lose worth in opposition to Bitcoin. The analyst says that crypto market contributors will probably carry on shifting their capital away from altcoins in favor of BTC.
“The rationale that we see these [Bitcoin] pumps within the pre-halving yr isn’t as a result of there’s numerous new liquidity coming into the market. It’s simply because lots of people are changing their altcoins to Bitcoin.
For the primary half of the yr [before the halving year], there’s ample liquidity within the altcoin market to proceed to result in new yearly highs for Bitcoin/US greenback. However finally, the altcoin market is bled dry.”
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