Analyst Benjamin Cowen argues that the altcoin market could stop falling against Bitcoin (BTC) when one key event occurs.
In a new video, Cowen tells his 806,000 YouTube subscribers that a reliable indicator of the altcoin market is the performance of Ethereum against Bitcoin (ETH/BTC).
Cowen suggests that once the ETH/BTC trading pair reaches the 0.04 BTC to 0.03 BTC range on the weekly chart, which it just touched, Bitcoin (BTC.D) dominance could soon begin to decline.
The BTC.D index tracks how much of the total cryptocurrency market capitalization is owned by Bitcoin. A decline in BTC.D suggests that altcoins will outperform Bitcoin.
“When we talk about the altcoin market in general, I think the ETH/Bitcoin valuation plays a big role in understanding whether the altcoin market is going to be successful or whether it’s going to have some problems? And one of the things we’ve been talking about this year, and really for the last two and a half years, is that altcoins are likely to continue to flow back into Bitcoin until the ETH/Bitcoin valuation gets to the 0.03 BTC–0.04 BTC range.
Right now ETH/Bitcoin just hit 0.04. Okay, the upper range target that we talked about a long time ago, years ago, is finally here. After all this time, it’s finally here.”
At the time of writing, the ETH/BTC pair is trading at 0.04276 BTC ($2,560), up 1.45% over the past 24 hours.
Cowen believes that BTC.D could peak within a few months.
“I’ve said many times, I think we may not see peak dominance until September. Potentially it could be reached in December.”
At the time of writing, BTC.D is hovering at 57.64%.
