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Crypto strategist Benjamin Cowen says the power of the inventory market might decide the short-term way forward for all crypto property except for Bitcoin.
In a brand new technique session, Cowen tells his 784,000 YouTube subscribers that the risk-off stance that shares seem to have adopted may negatively influence altcoins if it continues.
A risk-off stance signifies that traders are both staying on the sidelines or pulling out their capital.
Says Cowen,
“If the S&P 500 [index] stays risk-off for lengthy sufficient, which it tends to do in August or September of the pre-election 12 months, it might result in Bitcoin going beneath the 20-week SMA (easy shifting common) and staying there in August or September of the pre-election 12 months, which might then, in flip, result in the capitulation of the altcoin market.
And if the altcoin market if TOTAL3 [the market cap of all cryptocurrencies except Bitcoin and Ethereum], can’t even be bothered to take out its October 2022 excessive in a risk-on setting, then in fact it may go put in a brand new low in a risk-off setting.”
On when altcoins may flip bullish, Cowen says,
“The Bitcoin dominance is now above 50%. And I’ve mentioned many instances that altcoin accumulation, in my view, not monetary recommendation, ought to not likely begin till the Bitcoin dominance is at 60%. We’re not at 60%. Due to this fact, I don’t suppose it’s time for the altcoin market.”
The Bitcoin (BTC) dominance (BTC.D) chart tracks the proportion of the overall crypto market cap that belongs to the crypto king.
Turning to Bitcoin, Cowen says that the flagship crypto asset faces an ominous future forward of the halving scheduled for April 2024.
“I believe there’s a very good likelihood that Bitcoin will get that secondary scare. Loads of instances Bitcoin will get a secondary scare.
And actually, in the event you have a look at each prior excessive by Bitcoin within the pre-halving 12 months, now we have all the time seen a minimum of a 40% to 50% correction earlier than the halving. All the time.”
At time of writing, Bitcoin is buying and selling for $28,587.
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Disclaimer: Opinions expressed at The Every day Hodl aren’t funding recommendation. Traders ought to do their due diligence earlier than making any high-risk investments in Bitcoin, cryptocurrency or digital property. Please be suggested that your transfers and trades are at your personal danger, and any loses chances are you’ll incur are your duty. The Every day Hodl doesn’t advocate the shopping for or promoting of any cryptocurrencies or digital property, neither is The Every day Hodl an funding advisor. Please word that The Every day Hodl participates in affiliate marketing online.
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