Data shows that Bitfinex traders closed 12,000 long bitcoin positions last week. This is what happened the last time whales displayed this behavior.
bitcoin long positions on Bitfinex have now been reduced to 80,000 btc
in a new mail In X, analyst James V. Straten pointed out an interesting pattern in the derivatives positions of bitcoin whales on the Bitfinex cryptocurrency exchange.
The following chart shows how long and short positions (in btc) on the platform have changed over the past year:
<img decoding="async" class="alignnone aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/12/Bitcoin-Whales-Bitfinex-Close-12000-BTC-Long-Is-the-Rally.jpeg" alt="bitcoin long and short” width=”981″ height=”782″/>
Looks like the value of the metric has plunged in recent days | Source: @jimmyvs24 on X
As shown in the chart above, the Bitfinex exchange has had a relatively small number of short positions throughout the year. Long positions, on the other hand, have been quite important.
At the beginning of the year, these bitcoin long positions amounted to over 100,000 btc, but it appears that the indicator has suffered two notable declines since then.
The first of these drops occurred just after the strong rally that bitcoin saw in mid-March, following its lows below the $20,000 level. Given the timing of this large-scale prolonged shutdown, it would seem a reasonable possibility that these whales took action to secure their profits.
bitcoin would continue to see more bullishness not long after this drop in the indicator, but this rise was much smaller in scale than the previous rally as btc peaked shortly after.
After this high, btc recorded a significant drop. Therefore, the Bitfinex whales, although not completely accurate, still exited the market in a highly profitable opportunity near the top.
The second drop in the metric of the year occurred last week, as can be seen in the chart. During this drop, whales on the exchange closed long positions worth 12,000 btc, bringing the total long positions to approximately 80,000 btc.
Some of the whales may think that the current bitcoin rally has already gone far enough, so they have decided to get out of here while their profits are still high.
However, since these traders closed out the long positions, the price of the cryptocurrency has actually seen an increase as it has broken back above the $38,000 level.
However, given that these huge holders somewhat failed to close out their long positions earlier in the year, it is possible that a similar pattern could repeat itself this time as well, with a high arriving for the cryptocurrency with some delay.
While the short-term view may be bearish for bitcoin because of this, the fact that around 80,000 btc in long positions are still on Bitfinex should mean that many whales still remain bullish on the asset, so it could still be able. to reverse it in the long term.
btc Price
bitcoin had risen above $38,800 during its previous day's surge, but the coin has since seen some pullback as it now floats below $38,400.
<img loading="lazy" decoding="async" class="alignnone size-medium aligncenter" src="https://www.tradingview.com/x/GvaG6mF3/" alt="bitcoin price chart” width=”1534″ height=”869″/>
The price of the coin seems to have enjoyed a rise in the last 24 hours | Source: BTCUSD on TradingView
Featured image by Kanchanara on Unsplash.com, TradingView.com charts, Datamish.com
