Bitcoin Longs On Bitfinex Are Decreasing
An analyst named James V. Straten has observed a trend among Bitcoin whales on the Bitfinex exchange. The number of long positions held by these whales has been decreasing over the past year, while short positions have remained relatively low. At the beginning of the year, there were over 100,000 BTC in long positions, but this number has since gone through two significant drawdowns.
Whales Locking in Profits
The first drawdown occurred after a sharp rally in March when Bitcoin reached lows below $20,000. It is likely that whales took this opportunity to close their long positions and secure their profits. Following this decline, Bitcoin experienced a smaller surge before hitting a top.
Recent Long Position Closure
In the past week, Bitfinex whales have closed long positions worth 12,000 BTC, bringing the total to around 80,000 BTC. This may indicate that some whales believe the current Bitcoin surge has reached its peak and are exiting while profits are still high.
Possible Repeat Pattern
Although the price of Bitcoin has surged after the closure of long positions, it’s possible that history will repeat itself. Similar to earlier in the year, there may be a delay before a top is reached for the cryptocurrency. However, the fact that there are still 80,000 BTC in long positions on Bitfinex suggests that many whales remain bullish on Bitcoin in the long term.
BTC Price
Bitcoin recently reached a high above $38,800 but has since pulled back to under $38,400.
Hot Take: Whales Exiting Long Positions Could Signal Bitcoin’s Potential Peak
Data shows that Bitfinex traders have closed 12,000 Bitcoin long positions in the past week, reducing the total to 80,000 BTC. This behavior has been observed before and may indicate that whales are locking in profits and believe the current surge has reached its peak. However, history suggests there may be a delay before a top is reached for the cryptocurrency. Despite this short-term bearish view, the significant number of long positions still held by whales on Bitfinex suggests that many remain bullish on Bitcoin in the long term.
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