Bitcoin

<p>Popular cryptocurrency analyst Benjamin Cowen recently examined the Advance Decline Index (ADI) to gauge the current health of the crypto market. The ADI measures how many cryptocurrencies are advancing versus declining in price over a given period.</p>
<p>In the <a href="https://www.youtube.com/watch?v=BS97fnX0944" target="_blank" rel="noopener noreferrer nofollow">video</a> titled ‘<em>Cryptocurrency: Advance Decline Index</em>‘ Cowen explains that <em>“an asset is said to have advanced over a certain time period if the closing price is higher than the opening price for that period.</em>” The ADI acts as a running sum of the daily difference between advances and declines.</p>
<p>Cowen notes the ADI bottomed out in January 2020, around Bitcoin’s halving, potentially signaling Bitcoin dominance was topping. The ADI then put in higher lows until November 2021, when it peaked, coinciding with the crypto market top.</p>
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<h2 class="wp-block-heading" id="warning-signs-for-altcoins">Warning Signs for Altcoins</h2>
<p>Now in 2023, the ADI has plunged to lows not seen since 2019. As Cowen states, “<em>The argument has always been that whatever the secondary scare for Bitcoin materializes into, it would likely cause a lot more pain in the altcoin market.”</em></p>
<p>The extreme drop of the ADI may indicate further downside risk, especially for altcoins. Cowen warns that <em>“The ADI is plummeting right now, it’s actually below where it went back in 2019.” </em>He will be monitoring the ADI closely for signs of the market bottoming.</p>
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<p>The post <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com/advance-decline-index-plunges-predicting-a-lot-of-pain-for-altcoins-according-to-benjamin-cowen/">Advance Decline Index Plunges, Predicting ‘A Lot of Pain’ for Altcoins According to Benjamin Cowen</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://captainaltcoin.com">CaptainAltcoin</a>.</p>

Advance Decline Index Plunges, Predicting ‘A Lot of Pain’ for Altcoins According to Benjamin Cowen

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