The cryptocurrency market has been recovering its value after the recent fall that hit BTC and made its value drop close under $ 55,000.
Now, analysts point out that a further rally in the BTC price will also boost some altcoins.
For the popular cryptocurrency analyst Benjamin Cowen, one of the crypto assets that will be boosted in this new phase is the Avalanche (AVAX), which, according to him, still has steam in the tank after its high parabolic over the last three months.
The smart contract platform’s native token is currently ranked 11th by market value. Over the weekend, the cryptoactive hit its highest record of nearly $145.
It’s worth noting that the token was trading at around $13 in early August.
According to the analyst, AVAX is on a somewhat extended rally. However, instead of a correction in its value, it should still be higher in the short term.
As Cowen noted, Avalanche is at the same level of extent as it was when it hit $60. And when this value profile took hold, the cryptoactive more than doubled in price, which it should now.
Cowen also highlighted that the US dollar appreciation of AVAX is highly dependent on BTC. Therefore, as there is a bullish outlook for the BTC, the AVAX should also continue its bullishness.
“As long as BTC stays above its 20-week moving average, AVAX may continue to rebound until it goes too far to sustain it in the near term. Then we will have a setback. But as long as BTC remains healthy, then, of course, AVAX can continue to make a move.”
In this regard, Cowen noted that AVAX could rise another 50% against BTC to hit the top of its uptrend channel.
According to the analyst, such a move would take Avalanche to US$ 200, but that is if the value of BTC remains stable.