Benjamin Cowen, CEO of Into The Cryptoverse, urged against buying the dip in altcoins, predicting a further correction due to Bitcoin’s gaining dominance.
Amid a highly volatile market, Benjamin Cowen, the founder and CEO of Into The Cryptoverse, has issued a cautionary statement.
By expressing his views on the social media platform X, he opposes the present condition of alternative coin offerings and the broader market environment.
Benjamin Cowen Cautions Against Buying The Dip in Altcoins
Cowen commences his cautionary account by conducting a retrospective analysis of past market trends, detailing the disturbing parallels that arise regarding the events of 2019.
He emphasizes the pivotal moment when the Ethereum-to-Bitcoin ratio experienced a decline shortly before the altcoin market entered a 70% correction.
This precedent establishes the foundation for his apprehensions concerning the recent decline in the price of Ethereum relative to Bitcoin.
Additionally, it is worth noting that the ETH/BTC pair recently breached the support level two days ago, amplifying the likelihood of a retracement similar to the previous one.
Users engage in a discussion sparked by the dialogue Cowen’s commentary initiates.
According to one observer, numerous altcoins have already undergone 70% declines.
Despite this, Cowen advised against an additional decline. He noted, “Just because an alt has dropped 70% doesn’t mean it can’t drop another 70%.”
At the core of Cowen’s analysis lies the concept of Bitcoin dominance, which he forecasts may increase to sixty percent.
By invoking past market cycles, he emphasized the abyssal nature of the correlation between the prevalence of Bitcoin and the performance of alternative cryptocurrencies.
As a result, he predicts an impending period of instability in the altcoin industry.
Despite claims put forth by certain users regarding the persistence of the bull market, Cowen maintains an unwavering stance in his analysis.
He cited the meteoric rise of Bitcoin during the first half of 2019, which occurred before a correction in alternative cryptocurrencies.
Moreover, he emphasized that the upswing occurred concurrently with macroeconomic indicators, including the rate reductions implemented by the Federal Reserve and the emergence of gold.
Matrixport Echoes The Sentiment
Cowen identified a possible low for the Ethereum-to-Bitcoin ratio in a recent analysis.
This indicates that a lengthy phase of market consolidation is imminent.
He wrote, “We now officially have a weekly close below the June 2022 low.” Cowen added, “Potential bottom of ETH/BTC this summer after being in a bear market since Nov 2021.”
Moreover, he further added, “Timing can change, but the last 2 times this happened, the final capitulation process took 2-3 months.”
Matrixport, a platform for digital assets, concurs that this deteriorating ETH/BTC ratio could provoke a steep decline in altcoin liquidity.
In a post on X, Matrixport noted, “Some have argued that we should be on the cusp of an altcoin rally.”
They vigorously denied such assertions, citing Bitcoin’s growing prominence.
They wrote, “Although there have been massive rallies in a handful of meme-coins and altcoins, the broader upside could still be in its infancy according to the #Bitcoin dominance ratio.”
Matrixport added that this signals that this bull market is very narrow, with Bitcoin gaining even more market share.”
