Cryptocurrency analyst Benjamin is warning that Cardano (ADA) and different altcoins are primed for losses when paired in opposition to Bitcoin (BTC).
Cowen tells his 738,700 Twitter followers that in opposition to Bitcoin, Cardano might backside out at 0.00000400 BTC, or $0.11, a drop of 69.8% from present ranges.
“I feel ADA/BTC could be fortunate to backside at 0.00000800 BTC, however 0.00000400 BTC may very well be ultimate assist (although it might signify the next US greenback valuation at 0.00000400 BTC than at 0.00000800 BTC).”
In a chart depicting the seemingly trajectory of Cardano when paired in opposition to Bitcoin, Cowen appears to recommend that the seventh-largest crypto asset by market cap might hit the final support stage within the third quarter of 2023.
Cardano is buying and selling at 0.00001326 BTC, or $0.37, at time of writing.
Citing his personal expertise, Cowen says that seemingly small gradual losses as altcoins depreciate in opposition to Bitcoin are likely to balloon over time.
“A standard response to my posts about altcoins bleeding again to BTC is ‘Hey, it’s solely -2%!’
But it surely goes on and on.
I’ve lived this earlier than. Earlier than you recognize it, your altcoin is down 90-95% in opposition to BTC and also you thought it was ‘holding up properly’ the complete method down.”
Giving the instance of Chainlink’s (LINK) efficiency in opposition to BTC from 2018 to 2022, the favored analyst says that an altcoin that exhibits bullish value motion in opposition to Bitcoin throughout a bear market is more likely to carry out properly when altcoins begin rallying.
“Sure, as an illustration, LINK/BTC confirmed relative power in 2018, after which did very properly in 2019/2020.
So if you happen to discover sure altcoins placing in greater lows on their BTC pairs (which most gained’t be), then that may very well be a great signal for that altcoin through the subsequent altcoin season.”
Generated Picture: Midjourney