Cryptocurrency analyst Benjamin Cowen made remarkable predictions about Bitcoin (BTC) and the altcoin market in his latest published assessment.
According to Cowen, BTC dominance may soon find the bottom and enter an uptrend again.
Cowen stated that the Bitcoin price faces three possible scenarios in the coming period, and that all of these scenarios have historically increased BTC dominance:
If BTC Takes Support from 20-Week Moving Average (20W SMA)
Cowen stated that if Bitcoin gains support from this average and begins to rise, it will lead to a bull market and BTC dominance will increase. He argued that this scenario could be similar to what happened in 2017.
BTC Fails to Hold 20-Week Moving Average (20W SMA) and Falls to 50-Week Moving Average
According to the analyst, such a scenario could seriously impact altcoins. “If BTC drops by 10%, most altcoins would lose more than 30% of their value,” Cowen said, adding that this could raise concerns about the health of the bull market.
If BTC Stays Sideways Above 20W SMA Throughout September
Cowen stated that altcoins will gradually lose value in this case, and that BTC dominance will increase again. He drew attention to a similar scenario that occurred in 2020.
Cowen concluded:
“Whichever direction BTC/USD moves, it’s likely that BTC dominance will bottom out and begin to rise very soon. We’re at the beginning of the last major rotation into Bitcoin in this market cycle.”
*This is not investment advice.