- According to Benjamin Cowen, there hasn’t been an altcoin season in 2023.
- Cowen used the ADI indicator to explain the dynamics of the crypto market in 2023.
- Most of the well-performing altcoins have lower market caps.
According to Benjamin Cowen, CEO of Into The Cryptoverse, there hasn’t been an altcoin season in 2023, contrary to most people’s opinion. In a recently uploaded video, Cowen used the Advance Decline Index (ADI) indicator and other analysis tools to explain the dynamics of the crypto market in 2023.
Cowen showed a plummeting ADI for the altcoin market, noting that it has fallen below its 2019 lows. He also observed that in 2019 the ADI topped out higher than it did in 2023. According to the renowned analyst, visualizing the ADI chart indicates that we are not in an altcoin season. After all, most altcoins are putting in new lows.
According to Cowen, most analysts cherry-pick a few well-performing altcoins and use them to judge the entire market. He acknowledged the altcoins that have performed well this year but noted that most of them are newly launched cryptos, not burdened with the trauma of the bear market.
Cowen further noted that most well-performing altcoins have lower market caps, considering their novelty in the crypto market. However, he observed that the altcoins with higher market caps that did well this year often had more significant sell-offs in the bear market year. Hence, a lot of the bullish movement could be a mean reversion.
The renowned analyst compared the ADI with the total market cap of the crypto market. While the ADI is declining, the market cap has been trending sideways. He showed that the gains in total market cap happened early this year, following Bitcoin’s rally. Cowen further revealed that Bitcoin put in new highs, even as late as July. While this happened, most of the altcoins performed otherwise.
Therefore, Cowen concluded that a stagnant total market cap and dropping altcoin prices would imply a movement of funds from the altcoin market into Bitcoin. That is contrary to the belief of most analysts, who suggest we are in an altcoin season.
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