A extensively adopted crypto analyst is issuing a warning that the altcoin market is about to implode towards 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, appears to be like bearish towards Bitcoin.
Based on Cowen, the weak point of altcoins towards Bitcoin means that alts might 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 should cherry-pick ones within the high 20 that aren’t or they’re on their solution to new lows proper now otherwise you’d should discover a micro-cap that was created lately and present that one which’s not placing in new lows.
However a whole lot of them are and you may see that by taking a look at TOTAL3 minus USDT divided by Bitcoin. I believe what you’re witnessing proper now could be the final exit pump of alt/Bitcoin pairs earlier than we see closing capitulation of alt/Bitcoin pairs as we go into Could and June. That’s what I believe.”
The analyst says a TOTAL3/Bitcoin sample that performed out in 2019 could also be repeating itself within the present cycle.
“This can be a very comparable sample we noticed final cycle the place after setting a low right here [in May 2019], we then had one closing bounce [in June 2019] that in the end light just under the bull market help band after which it rolled over into the summer time.
And a whole lot 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 through the fall and the spring and the winter. In the course of the summertime, folks concentrate on different issues a whole lot of occasions, and so the collective bid for the altcoin market can usually dry up.
And so I believe that that’s what you’re taking a look at proper now. I believe we’re seeing alt/Bitcoin pairs get this closing bounce up, however I believe they’re going to in the end fail right here and return all the way down to the vary lows however this time after they break, I don’t assume there’s going to be any mercy in one other rally. I believe it’ll simply lead you into the ultimate capitulation, going again to 25% of Bitcoin’s market cap.”
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