Popular analyst Benjamin Cowen warns his 783,000 YouTube subscribers that history signals that a massive correction could be in the pipeline for altcoins. According to Cowen, the Bitcoin dominance chart is currently looking strong. If history is a good predictor of the future, Bitcoin may outperform altcoins in the near future.
Not good for altcoins
For Bitcoin, the halving is coming and often that is not a good thing for altcoins. At the moment, the halving is planned for April 2024, but it could still be March if the miners speed up a bit. “If dominance is bullish in the year before the halving, that is often not good for altcoins,” said Cowen.
However, that is purely based on past results, which in principle do not have to say anything about the future. Although it is special to see that Bitcoin is still so dominant at the moment.
We’ve been hearing about Ethereum’s so-called flipping of Bitcoin for years and years. With which Ethereum should take over the number one position from Bitcoin. To date, however, Bitcoin is still far ahead of Ethereum and there is certainly no flipping.
Above 49 percent?
If Bitcoin manages to push its dominance above 49 percent, Cowen says that would be a signal to exit altcoins. Then, according to him, the dominance can even increase if the Bitcoin price itself falls.
Furthermore, Cowen shares that he thinks capital will move from altcoins to Bitcoin in the longer term anyway. “You can see the bleeding of altcoins towards Bitcoin. It’s too clear for words. It happens, but it is a slow process.
At the time of writing, Bitcoin’s dominance is at 45.9 percent, and is still quite far from the 49 percent mark. Over the past week, Bitcoin even had to record a drop of 4 percent and it is really up to the bulls to pull the price up again.