Noted analyst Benjamin Cowen says Bitcoin (BTC) is likely to continue outperforming altcoins for the foreseeable future.
In a new strategy session, Cowen looks at Ethereum in the Bitcoin pair (ETH/BTC), which is often used as a measure of altcoin strength.
According to Cowen, ETH/BTC is in the process of bottoming out, but Bitcoin Dominance (BTC.D), which compares Bitcoin's market cap to the market cap of all digital assets, continues to rise and could potentially peak. We predict that there is a possibility that 60% level.
Cowen says many altcoins will capitulate against Bitcoin before BTC.D hits its all-time high.
“I think the dominance will reach 60% in the fourth quarter. So I think the Alternatives/Bitcoin pair will be that bold.” The question, of course, is will that come with the rise in Bitcoin? , or is it due to the collapse of Bitcoin? Last cycle we basically had a combination of both. ”
At the time of writing, BTC.D is trading at 58%.
The analyst also said that the $63,000 to $64,000 range (roughly the location of the 200-day moving average) is a key resistance area that BTC must overcome before it can begin a legitimate rally.
“So I think $63,000 to $64,000 is going to be a big level. If Bitcoin can get through that and hit new highs again, it definitely increases the chances of Bitcoin continuing to rise in the fourth quarter.
If Bitcoin finds resistance at $63,000 to $64,000 again, there is more evidence to suggest that it will continue as it did after the last rate cut cycle. So you see a couple of weeks of rally, you see an impressive rally, but then the market just sells off because it's not enough. ”
As of this writing, Bitcoin is trading at $63,824, up nearly 3% on the day.
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Featured image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
