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BitcoinSistemi 2025-02-18 17:44:08

Is the Bull in Bitcoin and Altcoins Possibly Over? Analytics Firm Addresses Concerns, Shares Technical Details

Cryptocurrency analytics firm Alphractal has provided insight into the ongoing market cycle by shedding light on altcoin correlations and Bitcoin’s current market position. According to Alphractal’s latest statement, altcoins have a stronger correlation with Bitcoin (BTC) than with Ethereum (ETH). Historically, a negative correlation between BTC and altcoins has often acted as a warning sign, indicating potential risk or trend reversal in the market. This dynamic serves as a sentiment indicator for both traders and investors. The firm also noted that while altcoins based on the Ethereum network tend to have a more organic relationship with ETH, Ethereum’s market behavior remains less consistent compared to other altcoins. Historical analysis of the BTC-ETH correlation over an eight-week (two-month) period reveals an interesting trend. When the correlation between the two assets is low, BTC tends to cripple ETH’s momentum. In many cases, periods where ETH fails to follow BTC’s movements are followed by a significant shift in Bitcoin’s trend. Related News: What Does Bitcoin Dominance Tell Us? Hits a Recent High Alphractal also took a look at the current state of Bitcoin addresses, noting that 90.8% are still in profit. Meanwhile, 4.5% of addresses are in loss and the remaining percentage remains neutral. The firm noted that in previous bull cycles, the percentage of addresses in loss sometimes exceeded 20%, but the broader market trend remains bullish. In the current cycle, loss percentages have exceeded 20% only a few times, notably in August and September 2024. In comparison, in previous bull cycles such as 2017 and 2021, this metric was broken many times without signaling the end of the market uptrend. Based on this data, Alphractal suggests that even if Bitcoin experiences a further correction and a higher percentage of addresses enter a losing position, this does not necessarily indicate the end of the bull cycle. Historically, short-term downtrends have been a natural occurrence within a broader bull cycle. *This is not investment advice. Continue Reading: Is the Bull in Bitcoin and Altcoins Possibly Over? Analytics Firm Addresses Concerns, Shares Technical Details