Cryptocurrency analytics firm Alphractal has raised concerns about the current conditions of the Bitcoin market, highlighting the increasing number of traders with leveraged positions as a potential warning sign. Alphractal's analysis suggests that high levels of leverage in the past have resulted in significant declines in Bitcoin, often due to long squeezes. While extreme peaks in leverage may signal seller exhaustion and mark local bottoms, the more dominant possibility is mass liquidation of long positions, leading to sudden and unexpected price movements. Furthermore, Alphractal has observed a decline in altcoin trading volume, potentially indicating waning interest from the public and institutional investors. However, it is worth noting that a similar pattern occurred in late 2021, where a drop in volume did not signify the end of a bull cycle as the total altcoin market cap still reached a new all-time high.



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