Is a Crypto Winter for Altcoins Approaching? Analyst Benjamin Cowen Weighs In

• Key Takeaway One: Crypto analyst Benjamin Cowen forecasts a tough period ahead for altcoin holders, predicting a market trend similar to the 2019 cycle.
• Key Takeaway Two: Cowen’s analysis of the ALT/BTC charts suggests an impending collapse against Bitcoin, potentially leading to a significant market correction.
• Key Takeaway Three: With a 100% consensus on an upcoming Fed rate cut, Bitcoin Dominance is expected to spike, further straining altcoin values against BTC.

Crypto enthusiasts and altcoin holders might be bracing for a chilly season ahead, if predictions by a well-followed crypto strategist hold true. Benjamin Cowen, with an impressive following of 839,200 on the social media platform X, has sounded the alarm for what appears to be an imminent market downturn for altcoins against the titan Bitcoin (BTC).

Diving into the archives and analysis, Cowen revisited the total market cap of altcoins, denoted as TOTAL3, against Bitcoin earlier this April. His findings? A startling resemblance to the patterns observed back in the 2019 cycle. During that period, Cowen had accurately predicted that a domino effect would ensue—starting with ALT/BTC pairs collapsing, followed by a harsh correction across the board, ultimately leading to altcoins capitulating against the US dollar.

Fast forward to the present day, and the ALT/BTC chart's support lines have begun to falter. "It’s time," Cowen states, hinting at what he believes to be the onset of a repeat of the 2019 cycle. According to his analysis, "We should finally see ALT/BTC pairs break down soon. Last cycle, they broke down one month before the 1st rate cut, and something similar could play out here too."

Adding to the foreboding atmosphere is the unanimous expectation among traders and investors, as indicated by CME’s FedWatch Tool, for the Federal Reserve to initiate rate cuts in the following month. This anticipated move is seen as a reaction to recessionary signals, prompting the Fed to aim for a 'soft landing' by slashing rates.

Cowen's prognosis doesn't stop there. He projects that Bitcoin Dominance (BTC.D)—a metric that gauges BTC’s share of the total crypto market cap—will ascend to 60% before altcoins see any form of respite. This surge in BTC dominance, expected to peak between September and December 2024, paints a daunting picture for altcoins. Currently, with BTC.D at 56.73%, altcoins have a steep hill to climb if they are to regain their footing against Bitcoin’s looming shadow.

For those closely watching the crypto markets, these insights from Benjamin Cowen provide a sobering outlook on the potential shifts in market dynamics. As the crypto world anticipates the Fed's next moves and its ramifications on the broader market, altcoin holders might need to brace for impact, hoping for a smooth navigation through potentially turbulent times ahead.

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(First reported by: The Daily Hodl)