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Cryptocurrency analyst Benjamin Cowen, known for his extensive following, indicates that the remainder of 2024 could pose challenges for altcoins. His recent video update highlights that altcoins may depreciate against Bitcoin 
$104,693 by the end of the year, based on historical trends.
Signs from Historical Trends
In his analysis, Cowen emphasizes that if one connects the dots from previous cycles, specifically from 2018 to 2020, they will observe that the trend line has been tested three times, with the third test marking a low point. He believes the current interest rate cycle is prolonged and that the third test of this trend line might occur by year’s end.
“If we connect the points again—one, two, and three—we can see that the third test of the trend line might occur toward the end of the year. This means that altcoin/Bitcoin pairs could lose value before year-end.”
Impact of Low Liquidity
According to Cowen, low net global liquidity is a key reason for altcoins losing value against Bitcoin. He urges investors to consider the factors contributing to this decline, with net liquidity being paramount. Analyzing global net liquidity reveals it has been forming lower peaks and troughs for some time.
“We need to think about the factors causing this drop, and net liquidity is at the forefront. When looking at global net liquidity, you will see that it has been creating lower highs and lows for a while.”
Cowen predicts that the altcoin/Bitcoin pairs will encounter resistance at the 0.4 level and will likely drop to lower levels before year-end. This analysis indicates that altcoin investors should exercise caution for the remainder of the year, given the historical trends and liquidity conditions that necessitate careful movement in the market. Investors may update their strategies considering potential risks.
