Bitcoin‘s (CRYPTO: BTC) rally to $76,000 follows the same pattern as the 2022 and 2018 midterm years, where February lows led to March rallies that ultimately formed lower highs before crashes, according to prominent analyst Benjamin Cowen.
The Stablecoin Dominance Pattern
Stablecoin dominance (USDT + USDC) exploded from 8.5% to 12.5% after sweeping prior highs, exactly as Cowen predicted two months ago when Bitcoin traded above $90,000.
The current pullback in stablecoin dominance mirrors patterns seen in Bitcoin dominance, palladium, and the Hang Seng Index over the past four years.
“When I look at stablecoin dominance, I would have to say objectively, it’s hard to say that this won’t just be a higher low,” Cowen said.
“If it takes out the low, then I’m wrong. But for now, this simply looks like what we’ve previously seen in other markets that exhibited a very similar pattern,” he added.
The pattern works like this: an asset sets a high, sells off, sets …