Those who have followed the financial markets for some time may have heard of opposite indicators. These measurements are often misleading at first glance – some occur positive, but tend to signal a marketing, while others who seem negative marking price recovery.
Such a opposite indicator is geared Bitcoin Longs on the Crypto Exchange BitFinex. Historically, the number of geared lengths of the exchange has tended to slip during bull races and rise during bearish trends.
From writing, the number of BTCUSD longed on BitFinex had dropped to 47,691, the lowest since December offering bullish signals to Bitcoin, according to data source trading. Tally of Longs peaked in the first half of April and has been falling since then, characterizing BTC’s rapid recovery from about $ 75K to detect heights of over $ 110,000.
“When BitFinex long positions rise, the price tends to fall. When long positions fall, the price usually rises,” said crypto analytics company Alphractal on X.
Alphractal explained to Conundrum, Alphractal said that dealers are typically wrong at the market direction. It leads to forced or discretionary liquidation that drives the price in the opposite direction.
“As long as BitFinex long positions continue to fall, Bitcoin will continue to rise,” noted João Wedson, CEO of Alphractal.
The chart shows the opposite nature of BTCUSD longing for BitFinex.
Since 2021, each major BTC rally, including those seen in November-December last year, has been the latest from the beginning of April, coincided with the object glass in BTCUSD along the stock exchange.
On the other hand, BTC’s bear development happened, including the 2022 crash and dropped from $ 100,000 to $ 75,000 early this year, as BTC/USD Longs increased.
