Alphractal has analyzed the current market dynamics of Bitcoin and highlighted that the cryptocurrency has reached an important turning point.
Current Situation in Bitcoin Market
Alphractal reported that the Long Term Realized Cap Impulse indicator has reached a historical support level. This indicator plays a crucial role in understanding the behavior of long-term investors and their relation to prices.
Possible Development Scenarios
According to Alphractal, when this level is reached, two scenarios may arise:
* Positive Reaction and Demand Growth: This may indicate that long-term investors continue to hold their positions, suggesting market stability. * Support Break and Sharp Declines: A break below this level may indicate that even the most resilient market players are starting to sell, which could increase selling pressure.
Short Liquidation Dynamics
Additionally, the analysis noted that Bitcoin has been liquidating short positions over the last 3 to 7 days. This development could trigger a new wave of volatility in the market, as leading players begin to close some of their positions.
Alphractal warns that the behavior of long-term investors during this period may determine the direction of the Bitcoin market.
