A broadly adopted crypto analyst is issuing a warning that the altcoin market is about to implode in opposition to Bitcoin (BTC).
In a brand new video replace, crypto strategist Benjamin Cowen tells his 800,000 YouTube subscribers that the TOTAL3 chart, which tracks the market capitalization of all altcoins minus Ethereum (ETH) and stablecoins, seems bearish in opposition to Bitcoin.
In line with Cowen, the weak spot of altcoins in opposition to Bitcoin means that alts could witness a collapse within the coming weeks.
“A majority of the altcoins are nonetheless placing in new lows on their Bitcoin pairs and to search out ones that aren’t, you’d must cherry-pick ones within the prime 20 that aren’t or they’re on their solution to new lows proper now otherwise you’d must discover a micro-cap that was created not too long ago and present that one which’s not placing in new lows.
However lots of them are and you may see that by taking a look at TOTAL3 minus USDT divided by Bitcoin. I feel what you’re witnessing proper now could be the final exit pump of alt/Bitcoin pairs earlier than we see remaining capitulation of alt/Bitcoin pairs as we go into Might and June. That’s what I feel.”
The analyst says a TOTAL3/Bitcoin sample that performed out in 2019 could also be repeating itself within the present cycle.
“It is a very related sample we noticed final cycle the place after setting a low right here [in May 2019], we then had one remaining bounce [in June 2019] that finally pale just under the bull market assist band after which it rolled over into the summer time.
And lots of occasions you will notice alt/Bitcoin pairs capitulate within the summertime as a result of lots of people aren’t as glued to their computer systems as they’re throughout the fall and the spring and the winter. Throughout the summertime, folks give attention to different issues lots of occasions, and so the collective bid for the altcoin market can usually dry up.
And so I feel that that’s what you’re taking a look at proper now. I feel we’re seeing alt/Bitcoin pairs get this remaining bounce up, however I feel they’re going to finally fail right here and return all the way down to the vary lows however this time once they break, I don’t suppose there’s going to be any mercy in one other rally. I feel it’ll simply lead you into the ultimate capitulation, going again to 25% of Bitcoin’s market cap.”
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