U.Today - Renowned crypto influencer and founder of IntoTheCryptoverse has issued a warning to cryptocurrency investors, stating that altcoins could be on the brink of a significant downturn against . In a recent tweet, Cowen highlighted a concerning resemblance between the current altcoin valuation against BTC and the situation observed in July 2019.
Cowen's tweet showcased a chart illustrating the Total 3 index, encompassing all cryptocurrencies, excluding Bitcoin and , in relation to BTC. The chart visibly indicates a critical support level approaching, reminiscent of a similar occurrence in 2019.
Despite the potentially unsettling prognosis, Cowen clarified that occasional bounces in altcoin-to-BTC pairs should not be ruled out. He emphasized the stochastic nature of market movements and asserted that intermittent rebounds should not undermine the overall macro thesis on the altcoin-to-BTC ratio.
Down only?
One of Cowen's followers raised the point that Bitcoin itself experienced a decline during the same period in 2019. The astute analyst acknowledged this fact and reinforced his position by stating that while may face a decline in the latter half of 2023, altcoins could suffer an even more pronounced drop. He stressed that ALT-to-BTC pairs are likely to experience significant downward pressure, irrespective of short-term fluctuations in BTC to USD.This warning comes at a time when the cryptocurrency market has been characterized by heightened volatility and market participants are keenly observing the movements of both Bitcoin and altcoins.