Analyst Benjamin Cowen suggests that the struggling altcoin market might start recovering against Bitcoin (BTC) under specific conditions.
Cowen explains that the key indicator to watch is Ethereum’s performance against Bitcoin (ETH/BTC). He mentions that if the ETH/BTC trading pair hits a range between 0.03 BTC and 0.04 BTC on the weekly chart, which it recently did, Bitcoin’s market dominance (BTC.D) could begin to decline.
The BTC.D index measures Bitcoin’s share of the total cryptocurrency market cap. A decrease in this index often indicates that altcoins are outperforming Bitcoin.
Cowen believes that the ETH/BTCvaluation is crucial for understanding whether the altcoin market will improve or continue facing challenges. He has anticipated for the past two and a half years that altcoins would likely continue to lose value to Bitcoin until ETH/BTC reaches the 0.03 to 0.04 BTC range. Now that ETH/BTC has reached 0.04, he suggests that a market shift might be imminent.
Cowen also forecasts that Bitcoin’s dominance might peak within the next few months. He suggests that BTC dominance could peak as early as September, but it could also extend to December.
An analyst has outlined potential scenarios for Bitcoin’s price, projecting it could close 2024 within the range of $108,000 to $155,000 if historical trends continue.
Bitcoin has been climbing steadily, with some of its momentum tied to recent moves by the Federal Reserve.
At the beginning of the week, Solana’s (SOL) price slightly declined but stayed close to $144 following a 9% rise over the previous week.
On Monday, investor interest surged for a blockchain-based game and DeFi protocol as its token price skyrocketed nearly 37%.