Popular analyst Benjamin Cowen expects Bitcoin to continue to outperform altcoins for the foreseeable future. In a new strategy session on YouTube, the analyst looks at Bitcoin’s trading pair with Ethereum, which is often used to chart the momentum of altcoins.
Bitcoin dominance going up?
In his new video, Cowen describes why he believes Bitcoin’s dominance will increase. Ultimately, the analyst expects this dominance to reach a peak of around 60%.
Before Bitcoin dominance reaches a peak, he sees many altcoins capitulating to Bitcoin. “I think the dominance will go to 60% in Q4 and that means I think altcoin/Bitcoin pairs will take a nosedive. Of course, the big question is whether altcoins will nosedive on a Bitcoin rally, or during a dump of the market’s largest coin.
Last cycle it was a combination of both,” says Benjamin Cowen. At the time of writing, Bitcoin’s dominance is dangling at around 58%.
Crucial resistance for Bitcoin
Furthermore, the analyst believes that the resistance of $63,000 to $64,000, roughly the level where we find the 200-day moving average, is a crucial range of resistance that Bitcoin must break before a legitimate rally can begin.
“So I would say the $63,000 to $64,000 level is a great level. If Bitcoin can break through that to create a higher high would certainly increase the chance of further gains in Q4 for the digital currency,” said Benjamin Cowen.
So far everything seems to be running smoothly. The US economy is spitting out very strong data, central banks are cutting interest rates, financial conditions are easing and global liquidity appears to be on the rise.
All together, that makes for a bullish outlook for Bitcoin and the rest of the risk asset market. Although of course this does not provide any guarantees.
Source: https://newsbit.nl/analist-bitcoin-blijft-beter-presteren-dan-altcoins/
