Bullish Bitcoin Bitfinex bets, one of the longest -driven crypto exchanges, have risen especially in recent weeks, presenting Bearish quota for BTC’s price that has fallen under critically moving average support.
Data from TradingView shows that BTC/USD long positions on BitFinex have increased by 20% over the past three months and reached 52,774 margin trading positions. These long represent positions using borrowed funds to buy bitcoin, amplifying both potential gains and risks.
An increase in long positions typically involves strong purchase pressure and a bullish market atmosphere. However, Bitcoin’s market has historically shown a paradox where increases in geared long positions often go ahead of price drop. This phenomenon is attributed to the traders tend to incorrectly assess market trends, leading to forced liquidation or estimated sales pushing prices in the opposite direction.
Historical analysis reveals that BTC/USD longs for BitFinex often moves reverse to Bitcoin’s price action. For example, former events in BTC coincide with falls in BitFinex -Longs, while prize drops have come along with increasing along. This contradictory pattern marks these long positions as an opposite indicator rather than a straightforward bullish signal.
The current increase in long trips therefore bearish caution. At the time of the press, Bitcoin’s award slipped short during its 100-day simple sliding average of $ 113,283, an important technical level whose violation often signals potentially further downward momentum.
This dynamic emphasizes a complex interaction: While the gear along indicates optimism, they also create painful liquidations if the market returns, which can intensify volatility and price drop.
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