Data shows Bitfinex traders have closed 12,000 Bitcoin longs over the past week. Here’s what happened the last time whales displayed this behavior.
Bitcoin longs on Bitfinex now down to 80,000 BTC
in a new Post On X, analyst James V. Stratton has pointed to an interesting pattern in the derivative positions of Bitcoin whales on cryptocurrency exchange Bitfinex.
The chart below shows how long and short positions (in BTC) have changed on the platform over the past year:
It seems that the value of the metric has dropped in recent days. Source: @jimmyvs24 on X
As shown in the graph above, there have been a relatively small number of short positions on the Bitfinex exchange throughout the year. On the other hand, long positions have been quite large.
At the beginning of the year, these Bitcoin long positions stood at over 100,000 BTC, but the indicator appears to have gone through two notable declines since then.
The first of these drops came on the heels of the sharp rally Bitcoin saw after hitting a low of $20,000 in mid-March. Given this massively prolonged shutdown time, it would seem a reasonable possibility that these whales made a move to lock in their profits.
The indicator would see some more upside in Bitcoin shortly after this drop, but this bounce was much smaller than the previous rally, as BTC topped out soon after.
After this top, BTC experienced some significant declines. Thus, the Bitfinex whale, although not entirely accurate, still exited the market at a highly profitable opportunity near the top.
The second decline in the metric for the year has occurred within the past week, as visible in the chart. During this decline, whales on the exchange have closed out longs worth 12,000 BTC, bringing the total long positions to approximately 80,000 BTC.
It’s possible that some whales think the current Bitcoin boom has gone too far, so they’ve decided to exit while their profits are still high.
However, as these traders closed out long positions, the cryptocurrency’s price actually recorded some gains as it broke above the $38,000 level.
However, given that these huge holders slightly missed the mark when closing out their long positions at the beginning of the year, it is possible that a similar pattern will be repeated this time too, with a slight delay for the cryptocurrency at the top. Will arrive.
While this may cause the short-term outlook for Bitcoin to be bearish, the fact that long positions on Bitfinex are still up around 80,000 BTC should mean that plenty of whales are still continuing to be bullish on the asset, So it may still be able to turn it around in the long term.
Bitcoin rose above $38,800 during the recent surge, but the coin has since seen some decline as it is now floating below $38,400.
The coin’s price appears to have increased over the past 24 hours Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from tradingview.com, datamish.com