Bitcoin Deja Vu? Expert Says 2024 Trend Matches 2019

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Bitcoin Deja Vu? Expert Says 2024 Trend Matches 2019
  • Benjamin Cowen thinks Bitcoin’s current price behavior is consistent with historical patterns.
  • Cowen debunked the suggestion that the BTC price is manipulated.
  • According to Cowen, prevailing market policies from the U.S. Federal Reserve do not favor altcoins.

Crypto analyst Benjamin Cowen believes Bitcoin’s current price behavior reflects historical patterns. Cowen, in a video, compared Bitcoin’s current trend to the 2019 crypto market, highlighting similarities between both periods, particularly the underperformance of altcoins against Bitcoin.

Cowen dismissed the speculation that Bitcoin’s price movement is subject to market manipulation. Instead, he attributed Bitcoin’s slowing upward momentum to the declining purchasing power of altcoins, citing the common practice of crypto users converting 

Cowen emphasized that this phenomenon has persisted for years. He used the Bitcoin dominance chart to illustrate his point, showing an upward trend since the beginning of 2022.

Notwithstanding the current market dynamics, Cowen believes the crypto market is reaching a critical point, with Bitcoin dominance around 55%. He noted that the current level of Bitcoin dominance coincides with a crucial level on the altcoin market cap (Total3) chart. Cowen revealed that Total3 is poised to break below a significant level, similar to its pattern in June 2019.

Cowen believes that prevailing Federal Reserve policies do not favor altcoins. He anticipates a further drop in Total3, potentially breaking below support held since June 2024. This break, he suggests, could expose altcoins to the risk of further devaluation of almost 40%.

The analyst maintains that Bitcoin holds an unfair advantage due to its established development over the years. He highlighted the recently approved spot Bitcoin ETFs as a development that increases Bitcoin’s exposure, giving it a significant edge over altcoins.

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