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.
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.
The post Is Bitcoin at Risk? Experts Warn of Divergence With Altcoins appeared first on Coindoo.
