Cryptocurrency analysis firm Alphractal has evaluated the current market cycle for Bitcoin (BTC). According to the firm’s analysis, the Recurring Fractal Cycle metric has accurately predicted BTC’s peaks and troughs to the day since 2015.
According to the analysis, the current cycle peak has not yet occurred when looking at this metric.
Alphractal maintains that this fractal has been surprisingly accurate historically, stating, “Will it repeat this time? No one knows for sure, but there’s a strong possibility.” Analysts claim that the fractal’s accuracy will be tested again in the next few months.
Alphractal also highlighted the activity in the crypto mining sector, noting that the correlation between mining stocks and Bitcoin market capitalization is an overlooked but highly leading signal in the market.
Mining companies are currently rising faster than BTC. One company that stands out in particular is Iris Energy (IREN). The company’s market value has risen from $1.2 billion to over $4 billion in a short time.
However, the decrease in correlation between BTC and mining stocks is a strong indicator that sharp fluctuations may occur in the coming period, according to Alphractal. Because large miners have significant BTC reserves both on-chain and in traditional financial markets, and the movements of these companies can directly affect the Bitcoin price.
*This is not investment advice.