- Altcoin Sherpa, bearish on three altcoins, also warns of a possible BTC price crash.
- Bank of America analysts say BTC’s movements compared to other assets shows it might become a haven again.
Altcoin Sherpa, a famous anonymous crypto analyst, has revealed that he is bearish on three altcoins – Fantom (FTM), Injective Protocol (INJ), and Near protocol (NEAR). He tweeted that the governance token of smart contract-enabled blockchain fantom (FTM) is NEAR collapse.
Sherpa also holds a similar view about the native token of decentralized -derivative exchange, Injective Protocol (INJ). However, he added that he’s about to exit his trade position in INJ because of a huge selling trend.
$INJ: The gift that keeps on giving so far but this entire area is a big supply zone. With that said, it’s been tapped several times the last few weeks and I think a lot of sellers are gone around $2. I’m riding this one until $2.50, entry around $1.80 #INJUSDT pic.twitter.com/nAtIpm1tX1
— Altcoin Sherpa (@AltcoinSherpa) October 8, 2022
Regarding NEAR (the native token of the decentralized app platform, the Near protocol), sherpa explained why he is bearish about it. However, he said that NEAR’s weak price resistance at this time might cause it to drop lower. Altcoin Sherpa also shares his prediction about Bitcoin’s price.
Sherpa predicts a decline in BTC’s price because it has been trading in the $19,000 range for four months. He further explained that it is likely that Bitcoin will test three lower price levels based on previous trends.
$BTC: I think that this one is just going to keep chopping. I don’t see any real direction in the short term; looks like it’s probably headed back to the demand area around $18.8k. #BTC #Bitcoin pic.twitter.com/jmAXJK9Tvm
— Altcoin Sherpa (@AltcoinSherpa) October 19, 2022
Sherpa is famous for its near-accurate predictions of the price movement of most altcoins, including DOGE and Ethereum. Hence, it isn’t surprising that his 185,000 followers on Twitter are always keen on hearing from him.
Bitcoin is changing correlations, a haven again?
Meanwhile, Bank of America analysts believe that Bitcoin’s movements compared to other digital assets indicate that investors might start considering it a haven again. Their assertions follow the period Bitcoin traded as a risk asset.
The leading digital asset had a 40-day correlation with the NASDAQ 100 of about 0.72., up from zero in mid-August. It also had a 0.50 and 0.69 correlation with the S&P 500 and Gold, respectively.
These have flattened and are even below the record levels seen some months ago. Andrew Moss and Alkesh Shah (the Bank of America analysts) see this Bitcoin movement as an indication of changing correlation.
The analysts wrote, “the steady rise in gold correlation and a decline in positive correlation with the S&P 500 hints that investors are reconsidering Bitcoin as a haven.” This perspective is important given uncertainties in macro-economies and a yet-to-be-seen market bottom.
With stimulus due to the COVID-19 pandemic flooding global economies, Bitcoin has been trading parallel to risk assets in the last two years. That parallel trend continued despite global central banks such as the US Federal Reserve hiking rates to curb rising inflation.
The Bank of America note is similar to recent insights shared by Galaxy Digital CEO Mike Novogratz. While speaking in an interview on Thursday, Novogratz said Bitcoin and Gold can be likened to the “canary in a coal mine.” Hence, he expects BTC’s price to soar ahead of the altcoins.