The Stock Market Could Impact the Short-Term Future of Altcoins, According to Benjamin Cowen
Cowen suggests that the current risk-off stance of the stock market could negatively affect altcoins. If the S&P 500 index remains risk-off for an extended period, it may push Bitcoin below the 20-week SMA. This, in turn, could lead to the capitulation of the altcoin market. Cowen highlights the importance of a risk-on environment for the altcoin market to perform well. If the altcoin market fails to surpass its October 2022 high during a risk-on environment, it may go on to set new lows when the market becomes risk-off.
BTC Dominance and Altcoin Accumulation: When Will the Market Turn Bullish?
Cowen believes that altcoin accumulation should not start until the Bitcoin dominance reaches 60%. Currently, the Bitcoin dominance is above 50%, indicating that it may not be the right time for the altcoin market to thrive. Cowen advises potential investors to wait until the Bitcoin dominance reaches his recommended threshold. This suggests that the altcoin market may not see a major boost until Bitcoin’s dominance increases further.
Bitcoin Faces a Potentially Ominous Future ahead of Halving, Says Cowen
Cowen points out that Bitcoin has historically experienced a secondary scare before each halving event. Looking at previous high points in the pre-halving year, Bitcoin has consistently undergone a 40% to 50% correction. With the next halving scheduled for April 2024, Cowen believes there is a good chance that Bitcoin will face another significant correction before the event. This potential scenario raises concerns about the short-term future of Bitcoin and its price performance leading up to the halving.
Bitcoin Price Stands at $28,587: What’s Next for the Crypto Asset?
As of now, Bitcoin is trading at $28,587. Cowen’s analysis and predictions regarding the stock market’s impact on altcoins and Bitcoin’s potential correction before the halving event shed light on the possible future trajectory of the cryptocurrency market. Investors and enthusiasts should closely monitor the stock market’s risk-on or risk-off stance, as well as Bitcoin’s performance, to gain insights into the short-term direction of cryptocurrencies.
Benjamin Cowen’s analysis suggests that the stock market’s strength and the Bitcoin dominance will play crucial roles in determining the short-term future of altcoins and Bitcoin. The risk-off stance of the stock market could lead to a decline in altcoins, while Bitcoin may face a correction before the next halving event. With Bitcoin’s price currently at $28,587, investors should remain attentive to market trends and developments to make informed decisions in the cryptocurrency space.
Analyst comment
Neutral news: Benjamin Cowen’s analysis provides insights into the potential impact of the stock market’s risk-off stance on altcoins and Bitcoin’s potential correction before the halving event. Investors should closely monitor market trends to make informed decisions.
