Joao Wedson, CEO of Alphractal, has warned of a possible sharp move in Bitcoin and the overall market in the short term. In his comments, he pointed out several technical signals that could lead to price declines.
Correlation Between BTC and Altcoins
Wedson dismisses the possibility of correlation between Bitcoin and altcoins. He indicated that a heatmap showing a breakdown in correlation could signal increased market volatility. According to him, such divergence often precedes a volatility storm.
Altcoin Season Index
Wedson expresses concern over the rising Altcoin Season Index, which is generally seen as a positive signal for altcoins. However, he believes that Bitcoin 'does not like' this situation and can suddenly intervene in the market during these processes.
Sell Signals from Alpha Quant
Recently, the Alpha Quant algorithm issued a sell signal. Wedson explained that this was anticipated due to selling pressure from some whales and a technically emerging downtrend.
Joao Wedson emphasizes that he does not believe the market is in its final stages, but such movements could signal the formation of a new price base. He advises everyone to remain vigilant and safeguard their investments.
