In a recent social media post, renowned market analyst, Benjamin Cowen offers a candid assessment of the cryptocurrency landscape. While challenging the prevailing optimism around altcoins, he presents a realistic outlook on the future of Bitcoin. In this article, we explore the factors cited by Cowen that support his pragmatic predictions for the crypto field, particularly concerning altcoins and possibilities of an impending “alt season.”
A Steady Bull Support Band Keeps Bitcoin Dominance Intact
Possessing a PhD in engineering and expertise in market analysis, Benjamin Cowen emphasises Bitcoin’s unwavering dominance throughout 2023, stating it has had no weekly close below its bull support band. Contrary to popular narratives about an imminent alt season, Cowen claims that Bitcoin’s persistence in maintaining its steadfast position has often resulted in short-lived surges for alternative cryptocurrencies; these increases usually experience declines within weeks. Major cryptocurrencies like SOL, ETH, AVAX, and ADA have consistently trailed behind Bitcoin over the year.
#BTC dominance has not had a weekly close below its bull market support band for all of 2023.
Every “Alt season” narrative so far this year eventually died a few weeks later.
Dominance will likely keep rising for the rest of the year. pic.twitter.com/O7kvgTG9ZC
— Benjamin Cowen (@intocryptoverse) October 21, 2023
No Altcoin Fireworks Expected: Cautious Projections until 2024
As 2023 heads into its fourth quarter, Cowen remains cautious about anticipating significant gains for altcoins. While his assertions do not necessarily predict groundbreaking peaks for Bitcoin’s price chart, they reiterate the need for setting realistic expectations based on past trends. He observes that historical alt seasons coincided with local tops for both Bitcoin and altcoins. Therefore, he believes that crypto investors should remain level-headed and prepare themselves for lacklustre altcoin performance until summer 2024.
- Factors Influencing Bearish Sentiments: Cowen attributes his pessimistic outlook on the crypto market – particularly altcoins – to the ongoing liquidity trend affecting various financial markets, including the cryptocurrency sector.
- Potential Market Turnaround: Analysts offer a glimmer of hope as they suggest that a change in US Federal Reserve’s monetary policy, such as adopting quantitative easing or printing money again, could trigger shift in the current crypto landscape.
The Current State of Altcoins: Slowly Gaining Momentum
In light of Bitcoin’s increasing value, selected players in the altcoin market, such as Chainlink, Solana, and Aave, are gradually building momentum. Over the last 24 hours, Bitcoin has reached its highest point in 16 months, filling a crucial CME gap at around $35,000. A slight correction in Bitcoin dominance could potentially lead to a surge for altcoins.
However, crypto analyst Captain Faibik maintains that optimism should be grounded, suggesting that altcoins could significantly benefit if Bitcoin’s dominance diminishes over the coming days. With the entire crypto market leaning bullish, “altseason” is not entirely impossible, with potential developments like Ethereum breaking beyond $2,100 and Solana crossing $32.
Popularity Trends: Solana and Ethereum Lead Among Altcoins
A recent report by CoinShares reveals that Solana and Ethereum remain the most popular choices among altcoins this year, witnessing cash inflows of about $15.5 million and $7.4 million in the past week alone. Despite notable progress and positive trends, cryptocurrency investors must heed Cowen’s cautionary advice and avoid unrealistic expectations, recognising that it may well be before altcoins once again take center stage within the ever-shifting crypto markets.
In conclusion, market analyst Benjamin Cowen’s realistic insights on the future of Bitcoin and its sustained dominance dampen any overoptimism about altcoins making substantial gains in the near term. Investors should keep a watchful eye on developments in US Federal Reserve monetary policy; however, it is important to remain grounded when considering the potential for a significant “alt season.”
