Closely followed crypto analyst Benjamin Cowen says that if digital assets enter a longer-term bear market, two altcoins may be worth keeping an eye on.
In a new strategy session, Cowen says that in current market conditions, altcoins are “very risky” and only Bitcoin (BTC) and stablecoins are worthy of holding until the climate changes.
However, Cowen says there are two trends worth watching. He first mentions Binance Coin (BNB), the utility token of global crypto exchange Binance.
“To give you two altcoin examples, I think it’s worth watching two trends. There’s the BNB/BTC valuation, which I think has been going up recently. It also went up after the lower low in 2018 as well so I’m kind of looking to see the BNB/BTC valuation maybe hit a local top here in the next few weeks.”
At time of writing, BNB/BTC is changing hands for 0.01 BTC ($290), 20% lower than its all-time high around 0.012 BTC or ($348.18).
Next up is oracle provider Chainlink in its Ethereum pair (LINK/ETH). Cowen notes that LINK/ETH was a great performer during the bear market from mid-2018 all the way to August of 2020.
“There’s also the LINK/ETH valuation which is interesting. This is one that I’ve sat on, it’s gotten wrecked to no end, but it did actually do well against Ether in the last bear market, and it was actually upon Bitcoin’s rally to the 200-day (moving average). So Bitcoin rallied back to the 200-day [moving average] in 2018 after the lower low.
Ether didn’t go anywhere, but then LINK went up, and then LINK/ETH rallied or the next two years after that, and it kept going up.”
Cowen says that if traders are patient, they will likely end up having an opportunity to get in on the “accumulation phase of a lifetime” in crypto markets.
I
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/PHOTOCREO Michal Bednarek