Crypto analyst Benjamin Cowen believes that Bitcoin (BTC) and the crypto market are likely to experience another downturn before reaching new highs. He suggests that the recent bounce in Bitcoin was a result of capital shifting from altcoins to BTC, rather than new money entering the market. Cowen argues that this shift in capital indicates that BTC’s rally lacks sustainability. He predicts that Bitcoin’s dominance will continue to increase as liquidity from the altcoin market is absorbed by BTC. Cowen points out that historically, Bitcoin tends to suck liquidity from the altcoin market before undergoing a final correction that sets it up for the next bull run. He suggests that altcoins are currently not worth the risk until there is a clear bottoming process in their Bitcoin pairs. Cowen emphasizes the importance of monitoring liquidity flows from the altcoin market back to Bitcoin, as this indicates when the altcoin market can no longer support the price of BTC.
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