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Benjamin Cowen, a cryptocurrency analyst and strategist who follows Bitcoin’s (BTC) every move, said the cryptocurrency market has entered one of the most “ruthless” phases of the market cycle. The analyst, who expects Bitcoin to increase its market dominance and suppress altcoins, also sounded a warning about Ethereum (ETH), the largest altcoin, via the ETH/BTC trading pair.
The cruelest part of the cycle
Veteran cryptocurrency analyst Benjamin Cowen stressed that Bitcoin’s dominance in the market, or its value relative to the total cryptocurrency market, will increase as risk appetite for the asset class decreases, saying:
We have been discussing this phase of the market cycle for a while now. This is the period when BTC falls, but BTC dominance (BTC.D) increases as altcoins fall more. This is always the most ruthless part of the market cycle.
Cowen said that using Fibonacci retracement levels, Bitcoin’s dominance over the market will peak at around 60%, similar to the previous cycle, saying:
I still believe that Bitcoin dominance will reach 60%. Of course, there may be some deviations. It could be 59%, it could be 63%, and some people will say, 'What about stablecoins? What happens? ' This is why I don't think the stablecoin market will exceed 65% or 70%.
The largest cryptocurrency BTC is trading at $27,595 and is down 1.20% in the past 24 hours, while Bitcoin’s dominance on the market is 50.1%.
Ethereum is expected to fall to around $1,000
Cowen also assessed the situation of Ethereum, the largest altcoin, relative to Bitcoin. The analyst predicts that ETH/BTC will fall to the 0.037 level, which is equivalent to about $1,016 at the time of writing:
The ETH/BTC trading pair continues to fall. This decline has happened fairly slowly (certainly slower than I expected), but the trend has actually been down for quite some time.
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