Bitcoin bull The bets on Bitfinex, one of the oldest crypto exchanges, have notably increased in recent weeks, presenting downward contributions for the price of BTC which dropped below the medium critical mobile medium.
TradingView data show that long BTC / USD positions on Bitfinex have jumped by 20% in the last three months, reaching 52,774 margin trading positions. These longs represent positions using funds borrowed to buy bitcoin, by amplifying both gains and potential risks.
As a rule, an increase in long positions implies a strong purchase pressure and a bullish feeling on the market. However, the Bitcoin market has historically shown a paradox where the increase in long -speaking positions often precedes the drop in prices. This phenomenon is attributed to the trend of merchants to poorly assess market trends, leading to forced liquidations or discretionary sale which sets prices in the opposite direction.
Historical analysis reveals that BTC / USD is long in Bitfinex is frequently moved to the action of bitcoin prices. For example, previous BTC rallies coincided with the drop in long Bitfinex, while price reductions were over long. This contradictory model marks these long positions as a contrary indicator rather than a simple optimistic signal.
The current rise of long power therefore raises lower prudence. At the time of the press, the price of Bitcoin briefly slipped below its simple mobile average at 100 days of $ 113,283, a key technical level whose violation often signals potential further.
This dynamic underlines a complex interaction: although the long lever indicate optimism, they have also set up painful liquidations if the market is reversed, which could intensify volatility and price cuts.
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