Is Bitcoin at Risk? Experts Warn of Divergence With Altcoins
A recent update from crypto analyst Joao Wedson has raised concerns about Bitcoin’s current rally, suggesting the leading cryptocurrency may be at a critical juncture.
According to Wedson, a Correlation Heatmap — a tool that measures how closely altcoins move in sync with Bitcoin — is now flashing a warning. While Bitcoin has surged upward, altcoins have largely failed to follow, raising the question: Is Bitcoin’s momentum sustainable?
What This Divergence Could Signal
There are two possible interpretations:
A short-term drop may be on the horizon if Bitcoin’s rise is being fueled by only a few large institutional players, rather than broader market participation.
Alternatively, Bitcoin could be entering a phase of independent dominance, leaving altcoins behind as it asserts itself as the primary digital asset.
READ MORE:
JPMorgan Finally Lets Clients Buy Bitcoin
Time to Tread Carefully
Wedson emphasizes caution, especially for those entering the market near Bitcoin’s all-time high (ATH). Even if the breakout continues, the risk-to-reward ratio may not justify new positions at current levels.
For long-term investors, he advises waiting for oversold signals on key technical indicators — a strategy often more effective than chasing short-term price action.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
