Altcoin Crash Looming? Analyst Predicts Major Drop by Year-End 2024

A prominent crypto analyst has issued a warning, suggesting that the remainder of 2024 doesn't bode well for altcoins.

In a recent video, Benjamin Cowen shared that, based on historical data, altcoins are likely to experience a significant drop by the end of the year, particularly in relation to Bitcoin (BTC).

Cowen linked this potential decline to the start of a new interest rate-cutting cycle, drawing parallels to patterns observed in previous market cycles. He highlighted how, during the 2018-2020 period, the market tagged a particular trendline three times, with the third tag marking the bottom of the cycle.

According to Cowen, this pattern could repeat, with the third touch of the trendline expected around the end of 2024. He also noted that the alt/Bitcoin pairs might fall to 0.25 in the fourth quarter, reinforcing his belief that these pairs could capitulate before the year ends.

Furthermore, Cowen predicted that while alt/Bitcoin pairs might encounter resistance at 0.4 and possibly rise slightly above that level, they are likely to be rejected and return to their lower ranges by the year’s conclusion.

In his analysis, Cowen also pointed to low global liquidity as a key factor driving the decline in altcoins. He argued that global net liquidity has been trending lower, with consistently lower highs and lower lows, and that this reduction in liquidity has been mirrored in the performance of alt/Bitcoin pairs, which began breaking down in tandem with liquidity levels.