The CEO of the Analysis Company Issued a Serious Warning: "Bitcoin May Be Setting Traps for Altcoins!"

The CEO of the crypto analysis company Alphractal, Joao Wedson, in his recent assessment, warned that Bitcoin and the overall market may face a sharp movement in the short term.

Wedson, in a statement made via social media, highlighted several technical signals and urged investors to be cautious against a possible downturn scenario.

In his statement, Wedson said, "After examining several charts today, the picture is still not entirely clear. However, considering the intense open long positions in the market, the likelihood of a significant drop in the coming hours is quite realistic."

The key points highlighted in Wedson's assessment are as follows:

• Correlation Warning: The heat map showing the breakdown of correlation between BTC and altcoins may be a harbinger of increasing volatility in the market. According to Wedson, such a divergence is often seen before a volatility storm.
• Altcoin Season Index: While the rise of the Altcoin Season Index is generally interpreted as a positive signal for altcoins, according to Wedson, BTC does not "like" this situation and can often make sudden interventions in the market during these processes.
• Alpha Quant Sell Signal: Wedson noted that the Alpha Quant algorithm recently issued a "sell" signal. He indicated that this signal is expected due to selling pressure from some whales and a technically formed downward trend.

Joao Wedson stated that he believes the market is not in its final phase, but such movements could indicate a process of establishing a new price floor. "This decline may not be final, but caution is necessary. Especially, we need to remain vigilant against potential traps that may arise," he concluded.