Altcoins Could Correct Even Further Based on Historic Precedence, Analyst Benjamin Cowen Warns

Analyst Benjamin Cowen is warning that altcoins could correct even further based on historic precedence. In a new video, Cowen tells the 804000 subscribers of his YouTube channel that the TOTAL3 chart

Cryptocurrency analyst Benjamin Cowen is presenting a warning that altcoins may experience a further correction, as indicated by historical trends.

In a recent video, Cowen highlights a key chart to his 804,000 YouTube subscribers, known as the TOTAL3 chart. This chart tracks the combined market capitalization of all crypto assets, excluding Bitcoin (BTC), Ethereum (ETH), and stablecoins. Cowen points out that the TOTAL3 chart appears to be mirroring a pattern observed in 2019.

“If you look at 2019, [altcoins] put in a low and then a high. Same thing right here [in 2024], a low, and then a high. And then they bled back down back to this low, and then they ended up holding it for a few weeks. So there’s a good chance you’re going to see something like that happen again with the altcoin market.”

According to Cowen, this could lead to a scenario where altcoins experience a further decline, reaching levels of $440 billion to $450 billion. At this point, the market may attempt to stabilize as it awaits crucial data on the Federal Reserve's efforts to achieve a soft landing for the economy.

The TOTAL3 market capitalization currently stands at $520 billion.

Furthermore, Cowen's analysis also identifies a concerning pattern in ETH's price action, which could contribute to a broader altcoin market decline.

“You could get something where [ETH] sort of just bounces around and then slowly makes its way down to the trend line again [at around $1,980]. I could see something like that happening… Last cycle, ETH/USD fell back into that wedge after ETH/Bitcoin broke down, and we’re seeing the same thing play out.”

notably, ETH's price is $2,508 at the time of writing, having dropped by over 11% in the last 24 hours.

good to note: The collective market capitalization of all crypto assets, excluding Bitcoin, Ethereum, and stablecoins, is valued at $520 billion at the time of writing.

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