Analysis Company CEO Issues Serious Warning: “Bitcoin May Be Setting A Trap For Altcoins”.
Joao Wedson, CEO of cryptocurrency analysis firm Alphractal, issued a warning about altcoins.
Joao Wedson, CEO of cryptocurrency analysis firm Alphractal, warned in his latest assessment that Bitcoin (BTC) and the overall market could face a sharp move in the short term.
In his statement on social media, Wedson highlighted several technical signals and urged investors to be cautious about a possible bearish scenario.
“After reviewing several charts today, the picture is still not completely clear. However, given the heavy open long positions in the market, the possibility of a significant decline in the coming hours is quite realistic,” Wedson said in a statement.
The key points in Wedson's assessment are as follows:
Correlation Warning: A heatmap showing a breakdown in correlation between BTC and altcoins could be a sign of increased market volatility. According to Wedson, this type of divergence often precedes a volatility storm.
Altcoin Season Index: Although the rising Altcoin Season Index is generally interpreted as a positive signal for altcoins, according to Wedson, BTC “does not like” this situation and can often intervene suddenly in the market during these processes.
Alpha Quant Sell Signal: Wedson noted that the Alpha Quant algorithm recently issued a “sell” signal. He explained that this signal was anticipated due to selling pressure from some whales and a technically emerging downtrend.
Joao Wedson stated that he doesn't think the market is in its final stages, but that such movements could signal the formation of a new price base. He concluded by saying, “This decline may not be final, but we must remain vigilant. We especially need to remain vigilant against potential pitfalls.”