Cryptocurrency analytics firm Alphractal has sounded the alarm about Bitcoin’s current market conditions, citing excessive leverage as a potential warning sign for traders. According to the firm's latest analysis, the Leveraged Traders Sentiment indicator shows that the number of traders with exposure to leveraged positions is increasing, which could trigger mass liquidations. Historically, when leverage reached high levels, Bitcoin faced significant declines due to long squeezes, according to the analytics firm. Alphractal notes that extreme peaks in leverage occasionally mark local bottoms and signal seller exhaustion, but the dominant possibility remains liquidation of long positions. Such events can lead to sudden and unexpected price movements, adding volatility to the market. In addition to Bitcoin’s leverage concerns, Alphractal also observed a decline in altcoin trading volume. Altcoins’ total volume recently reached the same level as in 2021 before starting to decline, suggesting waning public and institutional interest. Altcoin volume is often correlated with price action and is typically higher during bullish periods. While a drop in volume is not necessarily an indication of the end of a bull cycle, Alphractal notes that a similar pattern occurred in late 2021. Despite the significant drop in volume during that period, the total altcoin market cap still reached a new all-time high. *This is not investment advice.