The signal that has always indicated the bottom of Bitcoin... just failed for the first time

For many years, we have identified several strong Alpha signals in the crypto market.

One of the most reliable has always been this: when the Long/Short ratio of Bitcoin rises above the average of major altcoins, it historically indicates the formation of a price bottom.

But this time something different happened.

For the first time in history, BTC maintained this ratio at extremely high levels for an unusually long time – and yet we witnessed false bottom signals throughout November, while the price continued to fall.

This raises an important warning:

traders have never been so optimistic and so committed to opening long positions, even in highly risky conditions.

And when this happens, exchanges and major players tend to act – pushing the price down to liquidate overly leveraged positions.

Nevertheless, this heat map remains one of the most valuable tools for understanding the real sentiment in the BTC and altcoin markets.

You can access such heat maps at @Alphractal.