A widely followed crypto analyst is issuing a warning that the altcoin market is on the verge of imploding against Bitcoin (BTC).
In a new video update, crypto strategist Benjamin Cowen explains to his 800,000 YouTube subscribers that the TOTAL3 chart, which tracks the market cap of all altcoins minus Ethereum (ETH) and stablecoins, looks bearish against Bitcoin .
According to Cowen, the weakness of altcoins relative to Bitcoin suggests that altcoins could experience a collapse in the coming weeks.
“The majority of altcoins are still hitting new lows on their Bitcoin pairs and to find the ones that aren’t, you’ll need to select the ones in the top 20 that aren’t, otherwise they are on their way to new lows. at the moment, otherwise you will have to find a recently created micro-cap and show which one is not reaching new lows.
But many of them are and you can see this by looking at TOTAL3 minus USDT divided by Bitcoin. I think what you are seeing right now is the final pump out of the alt/Bitcoin pairs before we see the final capitulation of the alt/Bitcoin pairs as we approach May and June. That’s what I think.
The analyst claims that the TOTAL3/Bitcoin pattern that occurred in 2019 could repeat itself in the current cycle.
“This is a very similar trend to what we saw last cycle where after setting a low here [in May 2019]we then had one last bounce [in June 2019] which eventually faded just below the bull market support band and then extended into the summer.
And often you’ll see alt/Bitcoin pairs capitulate in the summer because many people aren’t as glued to their computers as they are in the fall, spring, and winter. During the summer, people are often focused on other things, so the collective supply in the altcoin market can often dry up.
And so I think that’s what you’re looking at right now. I think we see the alt/Bitcoin pairs getting that final bounce, but I think they will ultimately fail here and move back down to the lows of the range, but this time when they break I don’t think there will be mercy at another rally. I think this will just lead you to the final capitulation, going back to 25% of Bitcoin’s market cap.
Don’t miss a thing – Subscribe to receive email alerts straight to your inbox
Check Price Action
follow us on XFacebook and Telegram
Surf the daily Hodl mix
& nbsp
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any losses you may incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Image generated: DALLE3
