Broadly adopted crypto analyst Benjamin Cowen is warning that the chances are majorly in favor of Bitcoin (BTC) and crypto markets going for one more leg down earlier than new highs.
In a brand new technique session, Cowen argues that the latest bounce in Bitcoin was most probably because of capital shifting from altcoins and into the safer wager of BTC, slightly than new cash coming into the markets.
Due to this probably dynamic, the analyst says that BTC’s latest rally lacks sustainability.
“Regardless of the path of Bitcoin/USD, the dominance in Bitcoin is probably going going to go greater. Sooner or later this yr, I feel, we’ll attain a section the place there may be not sufficient liquidity from the altcoin market to maintain Bitcoin’s valuation within the brief time period and we’ll get a secondary scare similar to we did final cycle, and similar to we did the cycle earlier than that.
Finally, what I’m making an attempt to say is that, altcoins, for my part… for the final yr and a half and persevering with nonetheless till there’s a extra clear bottoming course of for altcoins of their Bitcoin pairs are simply not well worth the danger as a result of Bitcoin is sucking in all of that extra liquidity from the remainder of the market.”
Cowen says traditionally, Bitcoin sucks liquidity from the altcoin market earlier than making a ultimate correction that units BTC up for the following bull run.
“Numerous what we’re seeing is liquidity shifting away from the altcoin market and into Bitcoin.
One of many issues that I’ve mentioned earlier than, is that within the pre-halving years, there’s this concept that liquidity flows from the altcoin market again to Bitcoin, and it’s onerous to know at precisely what level liquidity from the altcoin market is not adequate to prop up the value of Bitcoin/USD, earlier than we usually get the secondary scare, earlier than the following halving and growth.”
I
Do not Miss a Beat – Subscribe to get e-mail alerts delivered on to your inbox
Test Value Motion
Observe us on Twitter, Fb and Telegram
Surf The Every day Hodl Combine
 
Disclaimer: Opinions expressed at The Every day Hodl should not funding recommendation. Traders ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital belongings. Please be suggested that your transfers and trades are at your individual danger, and any loses you could incur are your duty. The Every day Hodl doesn’t suggest the shopping for or promoting of any cryptocurrencies or digital belongings, neither is The Every day Hodl an funding advisor. Please observe that The Every day Hodl participates in online marketing.
Featured Picture: Shutterstock/Pleasure Chakma/Gorev Evgenii
