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The Analysis Company said, "The signal has arrived, there is a lot of volatility ahead," predicting what could happen with Bitcoin and altcoins!
The Crypto analysis company Alphractal stated in its latest assessment that the correlation between the altcoin markets and Bitcoin has decreased again.
The company believes that this situation historically heralds significant price movements and trend changes.
Alphractal stated in its analysis that "the correlation between Bitcoin and altcoin has decreased again, which is a sign that a major volatility is approaching" and expressed that the declines in the altcoin-Bitcoin correlation in historical data usually coincide with local peaks, strong upward reactions, or periods of increased volatility.
According to the analysis company, whales have started taking short positions in Bitcoin (BTC), Ethereum (ETH), and many altcoins compared to retail investors. This trend is observed with the ratio known as "Whale vs Individual Investor Ratio." Alphractal reminded that this ratio has previously risen before significant market fluctuations.
On the other hand, according to the "Supply Age Bands" data that classifies Bitcoin supply by age, the Short-Term Investor Supply representing BTC acquired in the last 3 months is (Short-Term Holders – STH) is clearly decreasing. This situation indicates that investors' interest in accumulating and buying Bitcoin has declined. Alphractal noted that during periods when this indicator is high, enthusiasm and intense interest are generally observed in the markets, while corrections in price occur when it is low.