Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesBotsEarnCopy
Crypto Market Stability: Watch Altcoin-Bitcoin Link

Crypto Market Stability: Watch Altcoin-Bitcoin Link

CoineditionCoinedition2024/08/28 16:00
By:Ikemefula Aruogu
  • Current crypto market outlook reflects overall investor confidence in cryptocurrencies.
  • There is a correlation between the altcoins and Bitcoin trends.
  • BNT, AXS, LINK, ALGO, and ADA are showing the highest correlation with Bitcoin.

Crypto analyst Joao Wedson believes the current crypto market health is closely tied to the relationship between Bitcoin and altcoins. When altcoins follow Bitcoin’s trends, it suggests a strong belief in the overall market’s stability.

Wedson pointed to historical instances when a deviation in the altcoin-Bitcoin correlation preceded a wholesale decline in crypto prices. He noted Bitcoin and other cryptocurrencies declined in January, June, and July 2024 after a deviation in the trend pattern between altcoins and Bitcoin.

Meanwhile, Wedson explained that altcoins outperforming Bitcoin trigger deviations in the correlation between the crypto categories. According to him, investors consider such negative correlations a warning sign for BTC, which could trigger an overall decline in the crypto market, as seen in the past.

Bitcoin has pulled back this week, losing nearly all the gains from last week. The price dropped from a $64.502 high on Monday to a $57,866 low on Wednesday before rebounding slightly by Thursday morning to trade for $59,695 at the time of writing, according to data from TradingView.

Solana, one of the best-performing altcoins of 2024, mirrored Bitcoin’s behavior, pulling back from last week’s rally and losing nearly all the gains it made. SOL’s price dropped from a $162.36 high, which it achieved last week, reaching a $140.55 low on Wednesday before rebounding slightly to trade for $144.88 at the time of writing.

In the meantime, Wedson observed altcoins like BNT, AXS, LINK, ALGO, and ADA have the highest correlation with Bitcoin. Meanwhile, DASH, CRV, DYDX, BNB, and ALICE displayed the lowest correlation levels. Despite individual variations, the overall trend indicates that altcoins generally follow Bitcoin’s lead, suggesting a healthy and stable crypto market.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Web3 ai Could Lead 2025’s Best Cryptos With 1,747% ROI, Outshining Toncoin & Chainlink’s Performance

Toncoin (TON) and Chainlink (LINK) show strong market positions, but Web3 ai’s AI-driven platform and sub-$0.001 price point may offer greater potential for exponential growth.Toncoin (TON): Leveraging Telegram’s Ecosystem for GrowthChainlink (LINK): Technical Indicators Point to Potential BreakoutWeb3 ai: Affordable Entry with AI-Driven Security ToolsClosing Thought

Coinomedia2025/05/24 23:40
Web3 ai Could Lead 2025’s Best Cryptos With 1,747% ROI, Outshining Toncoin & Chainlink’s Performance

Ethereum Set to Soar Past $4,000 Again

Ethereum eyes a comeback above $4,000 with a projected 55% surge amid rising market optimism.What’s Driving the Ethereum Rally?Could Ethereum Break Past Its All-Time High?

Coinomedia2025/05/24 23:40
Ethereum Set to Soar Past $4,000 Again

Lark Davis: Best Time to Make Money in Crypto

Crypto analyst Lark Davis says this is the best time to make money in crypto. Here’s why you should pay attention now.Why This Window Matters So MuchHow to Lock In for Maximum Gains

Coinomedia2025/05/24 23:40
Lark Davis: Best Time to Make Money in Crypto

Top Rated Cryptos to Buy in 2025: BlockDAG, Tron, Polygon, and Polkadot Line Up Ahead of Q3 Shift

Explore the top rated cryptos to buy in 2025, featuring BlockDAG’s limited-time 'Double Your BDAG' offer, and why Tron, Polygon, and Polkadot are gaining strong attention this year1. BlockDAG (BDAG)2. Tron (TRX)3. Polygon (MATIC)4. Polkadot (DOT)Closing View on Key 2025 Contenders

Coinomedia2025/05/24 23:40
Top Rated Cryptos to Buy in 2025: BlockDAG, Tron, Polygon, and Polkadot Line Up Ahead of Q3 Shift