2024-11-6 19:00 |
After enjoying a mini price run in the last week of October, Bitcoin’s price has corrected below $68k to start the first week of November. While this is normal price action for Bitcoin, this trend also impacts the crypto industry, particularly altcoins. Historical patterns suggest that altcoins’ performance highly depends on Bitcoin’s price action. BTC’s market dominance has hit 60%, affecting altcoin market performance and restricting its price rallies.
A crypto analyst, Benjamin Cowen, expects that altcoins will face a steep decline, probably in early 2025, before recovering. In a post, Cowen argues that the market will first witness a substantial loss in value for altcoins before signs of recovery emerge.
According to Cowen, the altcoin market will face “a reckoning,” and holders and traders can expect the correct to happen by December 2024 or early January 2025.
It looks like the grand finale of the altcoin reckoning has finally arrived.
The altcoin reckoning should be over by December 2024 (2nd week of January 2025 at the latest).
It has been a long journey, and many gave up along the way, but this process was always going to play out pic.twitter.com/WRVUvIHDTt
— Benjamin Cowen (@intocryptoverse) November 3, 2024
Altcoin Market Revisits 2019 Price ActionIn a YouTube video, Cowen predicted the price action of altcoins after reviewing Bitcoin’s price and historical trends. The ITC Crypto founder explained that an altcoin market rally will not happen soon due to Bitcoin’s current performance and market conditions.
Data suggests that altcoins are losing ground to the world’s top asset, and altcoins can only be appreciated if Bitcoin enjoys a parabolic run.
According to Cowen, altcoins’ current market condition is similar to what happened in the bear market in 2019. Altcoins were bearish during this period before gradually recovering in 2020 and hitting new highs after one year.
Cowen expects the same story for altcoins in 2025—altcoins’ prices will bottom first before they can start a price rally.
Analysts Now Have Mixed Views On Altcoins’ Market PerformanceIn another post, Cowen revisited the Bitcoin/altcoin pairing, saying that this pairing has been losing for three years. He stated that the pairing’s performance aligns with historical trends, with the last two “alt-seasons” happening after halving in 2017 and 2021.
BTC Continues Its Crypto Market DominanceBitcoin continues to lead the cryptocurrency industry, with its market share hitting 60.5%. According to Cryptographic, Bitcoin is enjoying a two-year high, stabilizing market prices within the $68k and $70k range. While Bitcoin continues to show strength, other alternative cryptos saw falling values, with some dropping by 20 to 40%.
Traditionally, Bitcoin’s dominance often coincides with declines in altcoin prices. However, many experts say a possible turning point can happen if BTC hits resistance at the 64 to 65.81% range. If it happens, BTC can achieve another all-time high or may move sideways. However, if BTC’s market share falls below 50%, we can expect a price rally for altcoins.
Featured image from Pexels, chart from TradingView
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