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Key Chart Signals Golden Cross, Posing Threat to Altcoins such as Shiba Inu (SHIB)
Benjamin Cowen’s analysis warns of a potential uptrend in the U.S. Dollar Index (DXY) due to a golden cross, suggesting it may attract capital away from cryptocurrencies.
Crypto analyst Benjamin Cowen recently shared an intriguing insight via Twitter, signaling potential implications for the cryptocurrency market. Cowen pointed out that the U.S. Dollar Index (DXY) has formed a golden cross on its chart, a technical pattern often associated with a significant uptrend.
A golden cross occurs when a short-term moving average crosses above a long-term moving average on an asset’s price chart. Cowen’s observation suggests that the U.S. dollar might be on the verge of a notable strengthening, with possible consequences for the broader financial landscape, including cryptocurrencies.
According to Cowen, as the U.S. dollar gains momentum, it could attract capital away from other markets, including the crypto space. However, he also anticipates a minor correction in the dollar index before such a shift fully materializes, which could lead to temporary gains in cryptocurrency prices.
#DXY just got a golden cross.
Perhaps a correction sometime in the next week or two, finding support at the 50D SMA, then a potential continuation of the trend higher. pic.twitter.com/MPLRXSkL6r
— Benjamin Cowen (@intocryptoverse) September 21, 2023
Dominance Issues for Altcoins
One crucial aspect revealed by Cowen’s analysis is the potential impact on altcoins like Shiba Inu (SHIB) and Cardano (ADA). Cowen believes that Bitcoin’s dominance on the cryptocurrency market will likely continue to grow even during this period of adjustment, potentially concentrating liquidity in Bitcoin and leaving altcoins vulnerable.
https://www.youtube.com/watch?v=2ea2-_Ct5Qk
This is not the first time Cowen has expressed concerns about the crypto market. Back in September, he hinted at an impending downturn, citing a notable reduction in liquidity. Cowen expects this trend to persist until quantitative easing measures, per U.S. Federal Reserve policy, potentially come into play, a scenario he believes might not materialize until around the summer of 2024.
Crypto Warning
The warning from crypto analyst Benjamin Cowen has raised concerns in the cryptocurrency market. Cowen recently highlighted an interesting development in the U.S. Dollar Index (DXY) chart, suggesting potential implications for the broader financial landscape, including cryptocurrencies. The chart displayed a golden cross, signaling a potential uptrend for the U.S. dollar.
A golden cross occurs when a short-term moving average crosses above a long-term moving average on an asset’s price chart. Cowen’s observation indicates that the U.S. dollar might experience significant strengthening, which could attract capital away from other markets, including the crypto space. However, Cowen also predicts a minor correction in the dollar index before the full shift occurs, which could lead to temporary gains in cryptocurrency prices.
The potential impact of this development on altcoins like Shiba Inu (SHIB) and Cardano (ADA) is a significant concern. Cowen believes that Bitcoin’s dominance in the market will continue to grow even during this adjustment period. This could concentrate liquidity in Bitcoin, leaving altcoins vulnerable to market fluctuations.
Concluding Thoughts
This is not the first time Cowen has expressed concerns about the crypto market. In September, he hinted at an impending downturn, citing a noticeable reduction in liquidity. Cowen expects this trend to persist until the implementation of quantitative easing measures according to U.S. Federal Reserve policy. However, he believes these measures may not come into play until around the summer of 2024.
The warning from Benjamin Cowen highlights the potential risks and challenges that lie ahead for the cryptocurrency market. Investors and traders are advised to closely monitor the developments in the U.S. Dollar Index and the overall market conditions to make informed decisions.
