Cryptocurrency analyst Benjamin Cowen forecasts that altcoins may face challenging times through 2024. Citing historical patterns, Cowen suggests that altcoins could lose value relative to Bitcoin before the year concludes. His analysis, shared in a recent video update, draws attention to the parallels between current trends and those observed in previous years.
Historical Trends Analysis
Cowen highlights a recurring pattern by analyzing past cycles from 2018 to 2020. He notes that the trend line has been tested three times, with the third test typically marking a significant low point. Cowen posits that this cyclical pattern may repeat by the end of 2024, suggesting that the current interest rate environment is extending this cycle.
What Causes Altcoin Value Loss?
One of Cowen’s key points is the impact of low global liquidity on altcoin values. He stresses the importance of understanding this factor as a driver of altcoin decline against Bitcoin. Cowen observes that global net liquidity has been trending downward, forming lower highs and lows, which exacerbates altcoin depreciation.
Key Takeaways from Cowen’s Analysis
Cowen’s insights offer valuable conclusions for investors:
- Altcoin/Bitcoin pairs may face resistance at the 0.4 level.
- Further declines in altcoin value are likely before year-end.
- Low liquidity is a critical factor impacting altcoin performance.
Cowen’s predictions urge caution for altcoin investors through the end of 2024. Historical trends and current liquidity conditions suggest investors should carefully evaluate their strategies. By understanding these dynamics, investors can better navigate potential risks in the altcoin market and adjust their portfolios accordingly.
