Popular crypto analyst Benjamin Cowen says he’s looking at a few signals that could indicate investors’ risk appetite for altcoins.
In a new interview on crypto channel InvestAnswers, Cowen says that he has not added to his altcoin holdings in the last three months due to the current macroeconomic backdrop.
“I think that when Bitcoin’s in a downtrend and every pump is getting sold off and you have the dollar turning higher, you have stocks turning lower, you have gold trending higher, you have the Fed fighting inflation and rolling over the balance sheet and also this war in Europe, it’s hard for me to look at that and say, ‘I want to go buy an altcoin.’”
Looking at Bitcoin, the analyst says he sees BTC potentially carving a bottom in the coming months.
“I’ve seen what happened in the second half of 2019. I saw what happened in 2018. I saw what happened in 2014. So what I’m looking for is from a mathematical perspective, taking the news out of it, one of the things we’ve seen before is that major bottoms tend to occur one year after the one-year ROI (return on investment) tops, and the one-year ROI actually topped in March of 2021, so plus or minus a couple [of] months on that.
If Bitcoin does have another leg down and we see sort of a bottom on the one-year ROI here in the next one to two months, then I would be getting a lot more optimistic on Bitcoin just from like a pure mathematical perspective.”
As for when Cowen plans to hop on altcoins, the crypto strategist says that he’s looking at Bitcoin and the stock market to give him the green light to do so.
“Right now, I’m still somewhat uneasy on the whole altcoin market. So again for me, Bitcoin and stablecoins, until either Bitcoin has a more clear capitulation to go back to some of the more historic levels, or Bitcoin shows strength and can actually get back above say like its 20-week moving average and starts to rally. If it can do that and stock starts turning higher, then we’re back to risk on.”
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The post Here’s When Crypto Analyst Benjamin Cowen Will Flip Bullish on Altcoins Once Again appeared first on The Daily Hodl.