Closely watched crypto analyst Benjamin Cowen says that if digital assets enter a longer-term bear market, two altcoins are 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 worth holding until the weather 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 there are two trends worth looking at. There is the valuation of BNB/BTC, which I think has been rising recently. It also rose after the lowest low in 2018, so I expect to see the BNB/BTC valuation perhaps hit a local high here in the coming weeks.”
At time of writing, BNB/BTC is changing hands for 0.01 BTC ($290), down 20% from its all-time high around 0.012 BTC or ($348.18).
The next step is the Oracle Chainlink provider on its Ethereum (LINK/ETH) pair. Cowen notes that LINK/ETH was a strong performer during the bear market from mid-2018 to August 2020.
“There is also the LINK/ETH valuation which is interesting. This is one that I’ve sat on, it’s been busted endlessly, but it actually did well against Ether in the last bear market, and it was actually on the 200 day (moving average) Bitcoin rally. So Bitcoin rallied again at 200 days. [moving average] in 2018 after the lowest 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 getting a chance to enter the “accumulation phase of their life” in the crypto markets.
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Featured Image: Shutterstock/PHOTOCREO Michal Bednarek