- Analyst Benjamin Cowen warns of potential further corrections in the altcoin market, drawing parallels with 2019 patterns.
- Ethereum shows a bearish trend similar to 2019, which could lead to a broader decline in the altcoin market.
Benjamin Cowen, a renowned crypto analyst, has issued a warning to altcoin investors. According to Cowen, the historical trends indicate that altcoins may undergo further corrections. In a recent video directed at his YouTube subscribers, Cowen went over the TOTAL3 chart, which measures the market cap of all other cryptocurrencies excluding BTC, ETH, or stablecoins.
Cowen pointed out a pattern that was seen in 2019, indicating that what is happening in the current altcoin market is similar to it. He noted, «You can see that in 2019 [altcoins]put in this low and then a high. Same thing right here [in 2024], a low, and then a high. And then they bled back down back to this low, and then they ended up holding it for a few weeks.»
He anticipates a possible drop in the market cap between $440 billion and $450 billion, similar to 2019, before plateauing. This outlook relies on the Federal Reserve’s capacity to implement a soft landing of the economy without bringing about a worse recession.
At the time of Cowen’s analysis, the TOTAL3 market cap was $520 billion. However, this figure suggests future uncertainty as it fluctuates within the expected range. Cowen’s observations are especially valuable for investors who are trying to find their way in the unpredictable world of altcoins. Cowen’s argument is based on historical data and paints a prudent picture of the short-term future of altcoins. He stresses that it is crucial to comprehend these patterns to make appropriate investment decisions.
Cowen Highlights Ethereum’s Bearish Pattern
Cowen also had some concerns about Ethereum (ETH), as he pointed out that it is tracing a bearish pattern similar to what was seen in 2019. He cautioned that this could lead to a general fall in the altcoin market.
This analysis is based on Ethereum’s historical performance and current market conditions. At the time of writing, Ethereum is at $2,508 after falling by over 11% in the last 24 hours.
Bitcoin Price
Bitcoin prices went higher on Tuesday due to the risk-on assets rebounding from a big loss in the previous session. In the past 24 hours, Bitcoin rose 4.2% to $54,836. The cryptocurrency had dropped as low as $49,000 before regaining some ground. This recovery comes as broader crypto prices also bounced back from Monday’s slump, mirroring a rebound in equity markets.
Solana (SOL)
Solana (SOL) has made a strong comeback recently, rising by more than 20% and currently trading above $140. Solana, the fifth largest cryptocurrency by market cap, dropped below the $121 level on Monday, which is a significant concern for investors. The price drop led to a rise in the trading volume of SOL by over 245%, which showed an increase in investors’ activity and interest in the market volatility. As of this writing, SOL is trading at $137, registering a 12.8% in the last 24 hours.
Cardano (ADA)
Cardano (ADA) saw a remarkable price surge on Tuesday, trading at $0. 3251. This is the highest single-day percentage increase since December 13, 2023, when it rose by 14.32%. The upward movement boosted Cardano’s market cap to $11.66 billion, representing 0.60% of the total cryptocurrency market cap. In the past 24 hours, ADA traded between $0.3115 to $0.3323.
