A major signal has appeared? Warning: Storm incoming for Bitcoin and
Altcoins
A new report from crypto analytics firm Alphractal is shaking up the
investor community, highlighting a series of warning signs that could
trigger major volatility in the crypto market in the near future.
Short-term investor momentum stalls
According to data from the “Supply Age Bands” metric, the amount of Bitcoin
held by short-term investors (those who bought within the last 3 months) is
dropping sharply.
This indicates a cooling sentiment among retail investors, who are no
longer eager to accumulate BTC as before.
Historically, when this metric dips low, Bitcoin often enters deep
correction phases.
Whales are retreating from the market
Alphractal also warns that "whales" — large-scale investors — have begun
increasing their short positions on Bitcoin, Ethereum, and several
altcoins.
Meanwhile, retail investors are trading in the opposite direction.
According to Alphractal, this imbalance often precedes sharp market
movements.
Bitcoin-altcoin correlation is weakening
One of the most notable findings: the correlation between Bitcoin and
altcoins is declining, suggesting each crypto is now moving on its own
path.
In the past, this has often been a precursor to major price swings — or
even full-blown trend reversals across the market.
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