Current crypto market outlook reflects overall investor confidence in cryptocurrencies.
There is a correlation between the altcoins and Bitcoin trends.
BNT, AXS, LINK, ALGO, and ADA are showing the highest correlation with Bitcoin.
Crypto analyst Joao Wedson believes the current crypto market health is closely tied to the relationship between Bitcoin and altcoins. When altcoins follow Bitcoinâs trends, it suggests a strong belief in the overall marketâs stability.
Wedson pointed to historical instances when a deviation in the altcoin-Bitcoin correlation preceded a wholesale decline in crypto prices. He noted Bitcoin and other cryptocurrencies declined in January, June, and July 2024 after a deviation in the trend pattern between altcoins and Bitcoin.
Meanwhile, Wedson explained that altcoins outperforming Bitcoin trigger deviations in the correlation between the crypto categories. According to him, investors consider such negative correlations a warning sign for BTC, which could trigger an overall decline in the crypto market, as seen in the past.
Bitcoin has pulled back this week, losing nearly all the gains from last week. The price dropped from a $64âŠ
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