Analyst warns crypto rebound is only a ‘partial reset’ of late-cycle market
As Q2 2026 begins, monetary advisor Benjamin Cowen has raised issues about Bitcoin’s sharp decline. He factors out that the worth has fallen almost 50% from its October all‑time excessive of $126K to the $60K vary.
Though Bitcoin has since rebounded above $70K, buying and selling at $74,409.33 at press time, Cowen warns that the priority stays. Remarking on which, Cowen famous,
That is solely a partial reset of a late-cycle setting outlined by restrictive liquidity, weak participation, and slender market breadth.
The analyst famous weak demand and heavy liquidity out there. Nonetheless, he additionally believes that there’s nonetheless room for sideways motion as an alternative of a right away crash. Seeing the market dynamics, Cowen has suggested traders to concentrate on “capital preservation with selective tactical deployment.”
Is altcoin season incoming?
Cowen further suggested that the cash is getting concentrated in Bitcoin and never altcoins within the present market dynamics. Evidently, this prompts a query: If Bitcoin is declining, are altcoins rising? However the Bitcoin dominance knowledge, as per TradingView, buying and selling at 59.69%, confirmed that Bitcoin was nonetheless dominating.
The CoinMarketCap’s altcoin index additional echoed this sentiment.
Nonetheless, this isn’t sufficient, as Cowen highlighted that the actual curiosity, social participation, and cooling on-chain knowledge nonetheless present pressure out there.
Ergo, Cowen put it finest when he famous,
The present setting is finest characterised by time-based capitulation, the place extra is unwound via extended consolidation and intermittent rallies relatively than a single, fast liquidation section.
Are on-chain metrics echoing related sentiment?
Confirming this concern in Q2 2026, CryptoQuant’s latest report additionally echoed the identical. The report highlighted how Bitcoin’s worth (on the time of reporting) was again to its highest degree seen since 4th of February 2026.
Nonetheless, a profound look beneficial that the rally was solely robust from the skin. In actuality, BTC was at a median shopping for worth for short-term merchants, which was performing as a “highly effective bear-market resistance degree.”
Drawing on previous references, the report underlined that in such situations, the worth normally makes the trouble to maneuver greater however usually will get rejected. Moreover, the Bitcoin Trade Influx chart reported about 11K Bitcoin being moved to exchanges, additional indicating that merchants had been getting ready to promote.
The truth is, profit-taking was additionally minimal at $500 million per day as in comparison with $1 billion up to now bearish cycles.
Nonetheless, BitMine’s Tom Lee additionally warned of a sell-off within the close to time period earlier than the market truly takes off.
Ultimate Abstract
- Benjamin Cowen warns of a sell-off section in Q2 2026 as Bitcoin sits at a 50% drop from its October ATH.
- Bitcoin worth, alternate influx, and every day realized earnings evaluation by CryptoQuant verify the continuing bearish sentiment.
