Bitcoin (BTC) and Altcoins have started a new week with a sharp decline. BTC fell to $112,000 and Ethereum (ETH) fell to $4,200.
The decline is believed to be due to the Fed's enthusiasm for interest rate reductions and investors' careful approach to risky assets facing an uncertain macroeconomic environment.
There have been a lot of analyses surrounding the decline, but market analyst Omkar Godbole said Bitcoin Long Positions at Bitfinex have recently increased by 20%, pushing prices up below the 100-day moving average.
Analysts said that the long positions of BTC/USD in Bitfinex often move in the opposite direction of Bitcoin's price action, and that an increase in the long position of BTC is a sign of a decline.
Typically, a longer position increase indicates a strong purchase pressure and an upward trend, but in this case, an increase in bullish bets indicates a negative outlook for BTC prices.
At this point, analysts cited historical data and said historically that lower prices often involve an increase in the leveraged long positions of Bitcoin.
“Historical analysis reveals that Bitfinex's long BTC/USD positions often move in the opposite direction of Bitcoin's price action.
For example, the historic rise in BTC coincides with the decline in Bitfinex's long positions, while the price decline occurred with the increase in long positions. This inconsistent pattern indicates that the long position increases as an inverse indicator rather than a direct bull signal.
Therefore, analysts say the current surge in Bitfinex Bitcoin calls for attention to bearish trends.
*This is not investment advice.
