đ„When altcoin correlations with Bitcoin decrease, it is often a signal of a potential trend shift in Bitcoinâs short-term price movement. This occurs because the altcoins are no longer following Bitcoin's direction. When altcoins rise significantly while Bitcoin remains stagnant, it can signal an impending dump. The opposite also holds true: if altcoins are falling substantially compared to Bitcoin, a pump in Bitcoinâs price may be on the horizon.
Additionally, we are observing a rise in the Long-Short Ratio for altcoins, indicating traders are showing renewed interest in long positions after sharp rallies in altcoins. Market makers typically respond with opposing movements, which can lead to a short-term price correction.
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