According to a chain analyst on X, Bitcoin has disintegrated by other cryptocurrencies or altcoin, which could lead to a serious price recession within the market on the following day.
Because the traders should prepare for the impact
In a post on July 18 on the Social Media X platform, Joao Wedson, founder of the Alphras cryptocurrency analysis company, reported that the price of bitcoin could attend a significant drop compared to the following day. The Crypto analyst based his conclusion on several results obtained from the chain analysis using three main metrics.
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First of all, Wedson referred to a previous post made on X by Alphras, stating that the market is currently dominated by long positions. According to the analyst, the effect of these long positions would not necessarily last long in a market in which shorts have been liquidated – a phenomenon that also applies to the reverse case.
The table above comes from the correlation heat map – BTCUSDT against Altcoin metric, which reads the trajectory of the two crypto categories and compare them. Using the graph as a base, Wedson said that the Altcoins are disicing themselves from Bitcoin.
When altcoin ceases to follow the command of the main cryptocurrency, development could be subject to a couple of interpretations, which affect the feeling of the market. Consequently, it is normal to expect greater volatility of the market.
Wedson also referred to the index of the Altcoin season against Bitcoin metric, which is used to measure whether altcoin are overcome in Bitcoin in a specific period. According to the analyst, this index of the Altcoin season is currently increasing, which is generally a positive sign for altcoin.
However, if historical trends are something to do, an ALTCOIN seasonal index increasing could be a negative signal for Bitcoin. Wedson explained that the Bitcoin market could experience a landfill, dragging Altcoin with it, to restore the balance of the market.
The Pundit Crypto also cited the Alpha signal as an influence in its conclusion. Wedson stressed that the metric flashed a sale, that it was expected, given that some significant whales have recently added to the sales pressure on Bitcoin selling a fraction of their participations.
Perspectives for altcoin
Although the market flashes threatening signs, Joao Wedson expressed optimism in the feasibility of the beginning of an altcoin event, saying that he does not believe that this is the final leg for the cryptocurrency market. “But it is probably a sign that the market is about to form a new price base. So be cautious with the traps that could appear along the road,” added the analyst.
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At the time of writing this document, Bitcoin is evaluated at around $ 117,783, reflecting only one increase in the price of 0.2% in the last 24 hours. Representing the other field, Ethereum, the “King of Altcoin”, increased by 2.23% in 24 hours and is currently evaluated at $ 3,562.
First floor image from Shutterstock, TradingView chart