🚨 Potential Downside Alert: $WIF and Altcoins 🚨
Here’s a clear example of the risks if $BTC revisits its previous lows, using $WIF as a case study. This isn't to single out $WIF, but its chart clearly illustrates the potential downside.
- 📉 Higher Beta Risk: Many altcoins and meme tokens are higher beta versions of $BTC. They tend to:
- Bounce harder on $BTC recoveries
- Fall harder during $BTC declines
- 🔄 Current WIF Trends:
- The bounce in WIF has pushed it back to its range highs
- It’s making a lower high on higher timeframes
- We’ve seen a triple bottom form just below its current price
- 📊 Potential Downside:
- If $BTC drops by 15% to revisit previous lows
- $WIF could experience a **40% decline** to test those triple lows
Many are viewing recent bounces as signs of strength, but it’s crucial to remember that altcoins and memes can react more intensely to $BTC movements. Keep an eye on these dynamics to manage your risk effectively!