Benjamin Cowen, a crypto analyst with a large following, states that the rest of 2024 could be a negative period for altcoins.
Signs of Historical Trends
Cowen, in his latest video update, said that altcoins will be ahead of Bitcoin by the end of the year $60,106 He states that it may lose value against historical trends.
“If you connect the dots from the previous cycle, from 2018 to 2020, you can see that this trendline was tested three times and the third test was the bottom.
Cowen thinks the interest rate cycle is longer this time around and a third test of the trendline could occur by the end of the year.
“Connecting the dots again—one, two, and three—we see that the third test of the trendline could occur towards the end of the year. This means that altcoin/Bitcoin pairs could lose value before the end of the year.”
The Impact of Low Liquidity
According to the analyst, low net global liquidity is one of the main reasons why altcoins are losing value against Bitcoin.
“We have to think about the factors that have caused this to fall, and net liquidity is one of them. When you look at global net liquidity, you will see that it has been making lower highs and lows for some time.”
Cowen predicts that altcoin/Bitcoin pairs will face resistance at the 0.4 level and move lower before the end of the year.
These analyses suggest that altcoin investors should be cautious for the rest of the year. Historical trends and liquidity conditions require careful movement in the market. Investors can update their strategies by considering possible risks.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
