This article is also available in Spanish.
After enjoying the low price found in the last week of October, Bitcoin price adjusted below $68k to start the first week of November. While this is typical price action for Bitcoin, this trend is also affecting the crypto industry, especially altcoins. Historical patterns suggest that the performance of altcoins is highly dependent on the price action of Bitcoin. BTC’s market dominance has reached 60%, which affects the performance of the altcoin market and limits its price rallies.
Related Reading
Crypto analyst, Benjamin Cowen, expects that altcoins will experience a major decline, perhaps in early 2025, before recovering. In the post, Cowen says the market will begin to see significant losses in the value of altcoins before signs of recovery emerge.
According to Cowen, the altcoin market will face a “figure,” and owners and sellers can expect the right thing to happen in December 2024 or early January 2025.
It seems that the grand finale of the altcoin countdown has finally arrived.
The altcoin calculation should end in December 2024 (2nd week of January 2025 at the latest).
It was a long journey, and many quit along the way, but this process would always play out pic.twitter.com/WRVUvIHDTt
– Benjamin Cowen (@intocryptoverse) November 3, 2024
Altcoin Market Revisits 2019 Price Action
In a YouTube video, Cowen predicted the price action of altcoins after reviewing Bitcoin’s price and historical trends. The founder of ITC Crypto explained that the rally of the altcoin market will not happen soon due to the current Bitcoin performance and market conditions.
The data suggests that altcoins are losing their top asset position in the world, and altcoins can only appreciate if Bitcoin enjoys a parabolic run.
According to Cowen, the current market situation for altcoins is similar to what happened in the bear market in 2019. Altcoins were bearish during this period before slowly recovering in 2020 and hitting new highs one year later.
Cowen expects a similar story for altcoins in 2025—altcoin prices will first bottom out before starting a price rally.
Analysts Now Have a Mixed View on Altcoins’ Market Performance
In another post, Cowen revisited the Bitcoin/altcoin pairing, saying that the pair has lost three years. He said the pairing’s performance is in line with historical trends, with two “alt-seasons” occurring after the decline in 2017 and 2021.
BTC Continues Its Domination of the Crypto Market
Bitcoin continues to lead the cryptocurrency industry, its market share reaching 60.5%. According to Cryptographic, Bitcoin is enjoying a two-year high, stabilizing market prices within the range of $68k and $70k. While Bitcoin continues to show strength, other cryptos are seeing their prices drop, with others dropping by 20 to 40%.
Related Reading
Traditionally, Bitcoin’s dominance has often been accompanied by falling altcoin prices. However, many experts say that a reversal is likely to happen if BTC hits the resistance in the range of 64 to 65.81%. If it does, BTC could reach another high or it could go sideways. However, if the market share of BTC falls below 50%, we can expect a rally in the price of altcoins.
Featured image from Pexels, chart from TradingView