Bitcoin
Here’s a potential ETH/BTC capitulation scenario, according to crypto analyst Benjamin Cowen
A widely followed cryptocurrency analyst is analyzing historical price action to paint a capitulation scenario for Ethereum versus Bitcoin (ETH/BTC) pair.
In a new video update, cryptocurrency strategist Benjamin Cowen account its 803,000 YouTube subscribers say ETH/BTC could be in trouble if the Federal Reserve cuts rates in September and the pair follows the same pattern it followed during the 2016 market cycle.
“What’s really interesting about 2016 is when you look at [the chart]swept [the lows at 0.015 BTC] in June, while in this cycle [swept the lows at 0.045 BTC] in May, about a month before.”
Source: Benjamin Cowen/YouTube
Cowen goes on to say that if the ETH/BTC pair follows in the footsteps of a 2016-style capitulation, the pair could first rise to its immediate resistance at 0.056 BTC in August before revisiting support at 0.045 BTC in September should the Fed cut rates that month.
The analyst also predicts that a rate cut could trigger a collapse in the pair and take the ETH/BTC pair to cycle lows by the end of the year.
In December 2016, ETH/BTC dropped to 0.00733 BTC before reaching record highs of 0.156 BTC a year later.
At the time of writing, the ETH/BTC pair was trading at 0.0519 BTC, worth $3,524.
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