Analysis Company CEO Issues Serious Warning: “Bitcoin May Be Setting A Trap For 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.”

*This is not investment advice.