- Altcoin Sherpa, bearish on three altcoins, also warns of a possible BTC price crash.
- Bank of America analysts say BTC’s moves against other assets show it could once again become a safe haven.
Altcoin Sherpa, a well-known 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 smart contract enabled ghost blockchain (FTM) governance token is NEAR crashing.
Sherpa also has a similar view on the native token of the decentralized derivative exchange, Injective Protocol (INJ). However, he added that he was about to exit his trading position in INJ due to a huge selling trend.
$INJ: The gift that keeps giving so far but this whole area is one big supply area. That said, it’s been mined multiple times over the past few weeks and I think a lot of sellers left around $2. I ride this one up to $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 application platform, the Near protocol), Sherpa explained why he was bearish on this. However, he said that NEAR’s weak price resistance at this time could cause it to fall. Altcoin Sherpa also shares his Bitcoin price prediction.
Sherpa predicts a drop in the price of BTC as it has been trading in the $19,000 range for the past four months. He further explained that Bitcoin is likely to test three lower price levels based on previous trends.
$BTC: I think this one will just keep chopping. I don’t see any real short-term direction; looks like it has probably moved back towards the demand zone around $18.8,000. #BTC #Bitcoins 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. So it’s no surprise that his 185,000 Twitter followers are always eager to hear from him.
Bitcoin changes correlations, safe haven again?
Meanwhile, analysts at Bank of America believe Bitcoin’s moves against other digital assets indicate that investors may start to see it as a safe haven again. Their claims follow the period when Bitcoin was traded as a risky asset.
The leading digital asset had a 40-day correlation to the NASDAQ 100 of around 0.72, down from zero in mid-August. It also had a correlation of 0.50 and 0.69 with the S&P 500 and gold, respectively.
These have flattened out and are even below the record levels seen a few months ago. Andrew Moss and Alkesh Shah (Bank of America analysts) see this bitcoin movement as an indication of where the correlation is going.
The analysts wrote, “Gold’s steady rise in correlation and a decline in positive correlation with the S&P 500 suggests investors are reconsidering Bitcoin as a safe haven.” This outlook is important given macro-economic uncertainties and a market bottom yet to be seen.
With the stimulus due to the COVID-19 pandemic flooding global economies, Bitcoin has traded alongside risky assets for the past two years. This parallel trend continued despite raising rates from global central banks such as the US Federal Reserve to curb rising inflation.
Bank of America’s rating is similar to recent information shared by Galaxy Digital CEO Mike Novogratz. During an interview on Thursday, Novogratz said Bitcoin and Gold can be compared to the “canary in a coal mine.” Therefore, he expects the price of BTC to surge ahead of altcoins.