- Altcoin Sherpa, which is falling on three altcoins, also warns of a possible crash in the price of BTC.
- Bank of America analysts say the movement of BTC relative to other assets shows that it may once again become a haven.
Altcoin Sherpa, a famous anonymous crypto-analyst, has revealed that it is bearish on three altcoins – Fantom (FTM), Injective Protocol (INJ), and Near Protocol (NEAR). He tweeted that the blockchain fantom (FTM) governance token enabled by a smart contract is close to collapse.
Sherpas also hold a similar view of the original code for a decentralized derivative exchange, the Injection Protocol (INJ). However, he added that he is on the verge of exiting his mall in INJ due to a huge selling trend.
INJ dollars: The gift that keeps on giving yet but this whole area is a big supply area. With that said, it’s been tapped a few times in the past few weeks and I think a lot of sellers have gone with around $2. I ride this up to $2.50, entry is around $1.80 #INJUSDT pic.twitter.com/nAtIpm1tX1
– Altcoin Sherpa (AltcoinSherpa) October 8, 2022
Regarding NEAR (Native Token for Decentralized Application Platform, Near Protocol), Sherpa explained why he is negative about it. However, he said that weak price resistance for NEAR at this time could pull it down. Altcoin Sherpa also shares his Bitcoin price predictions.
Sherpa is anticipating a drop in the price of BTC as it has been trading in the $19,000 range for four months. He further explained that Bitcoin is likely to test three lower price levels based on previous trends.
BTC dollars: I think this guy is going to keep chipping. I don’t see any real trend in the short term. It appears likely that it will return to the demand territory around $18.8K. #BTC # bitcoin pic.twitter.com/jmAXJK9Tvm
– Altcoin Sherpa (AltcoinSherpa) October 19, 2022
Sherpa is known for its near-accurate predictions of the price movement of most altcoins, including DOGE and Ethereum. Hence, it comes as no surprise that his 185,000 followers on Twitter are always eager to listen.
Bitcoin is changing relationships, is it a haven again?
Meanwhile, Bank of America analysts believe that Bitcoin’s moves relative to other digital assets suggest that investors may start to see it as a haven again. Their assertions track the period in which bitcoin was traded as a risk asset.
The leading digital asset had a 40-day correlation with the Nasdaq 100 index of about 0.72, up from zero in mid-August. It also had a correlation of 0.50 and 0.69 with the S&P 500 and gold, respectively.
They have settled and are even below the record levels seen a few months ago. Andrew Moss and Alkash Shah (Bank of America analysts) see this Bitcoin movement as an indication of the changing correlation.
The analysts wrote, “The steady rise in gold’s correlation and the decline in positive correlation with the S&P 500 hint that investors are reconsidering Bitcoin as a safe haven.” This perspective is important given the uncertainty in the macro economies and the market bottom we haven’t seen yet.
With the stimulus from the COVID-19 pandemic engulfing global economies, Bitcoin has been trading parallel to risky assets for the past two years. This parallel trend has continued despite global central banks such as the US Federal Reserve raising interest rates to curb rising inflation.
The Bank of America memo is similar to recent insights shared by Galaxy Digital CEO Mike Novogratz. Speaking in an interview on Thursday, Novogratz said that bitcoin and gold can be likened to “the canary in a coal mine.” Thus, he expects the price of BTC to rise ahead of altcoins.