Analyst Predicts Bitcoin will Outperform Altcoins, Identifies Key Resistance Level for Q4 Bullishness
Renowned analyst Benjamin Cowen suggests that Bitcoin (BTC) will continue to outperform altcoins in the near future. Cowen focuses on Ethereum in its Bitcoin pair (ETH/BTC), which often serves as an indicator of altcoin strength.
Cowen believes that ETH/BTC is currently in the process of reaching its bottom, but he predicts that Bitcoin Dominance (BTC.D), which compares Bitcoin’s market capitalization to that of all other digital assets, will continue to rise and potentially reach the 60% mark. This means that many altcoins are likely to struggle against Bitcoin.
According to Cowen, BTC.D might top out in Q4, leading to a decline in alt/Bitcoin pairs. Whether this will occur during a Bitcoin rally or a Bitcoin slump remains uncertain, as previous cycles have seen a combination of both scenarios. Currently, BTC.D stands at around 58%.
The analyst also highlights the $63,000 to $64,000 range as a crucial resistance level for Bitcoin. This range aligns with the 200-day moving average and must be surpassed for a significant rally to occur. If Bitcoin successfully breaks through this level and establishes a higher high, it increases the likelihood of continued upward movement in Q4. However, if it encounters resistance once again, similar to the post-rate cuts cycle, it could lead to a temporary rally followed by a market sell-off.
As of now, Bitcoin is trading at $63,824, representing an increase of nearly 3% within the day.