Those who have been following financial markets for a while may have heard the opposite metric. These indicators are often seemingly misleading. Some may appear positive, but tend to show a downward trend in the market, while others may see the rise in the mark as negative.
One such opposing indicator is the use of Bitcoin Long with Crypto Exchange Bitfinex. Historically, the number of leveraged longs in exchange tended to slide during bull run and rise with a bearish trend.
At the time of writing, the number of BTCUSD longs in Bitfinex fell to 47,691, providing a bullish clue for Bitcoin, as its lowest since December, according to the data source TradingView. Long’s tally peaked in early April and has since declined, with BTC’s rapid recovery highs from around $75,000 to over $110,000.
“When Bitfinex’s long positions rise, prices tend to fall. When longer positions fall, prices usually rise,” Crypto Analytics Firm Alphractal said in X.
Describing Conundrum, Alphractal said traders are usually incorrect about the direction of the market. It leads to forced or discretionary liquidation, and drives prices in the opposite direction.
“As long positions at Bitfinex continue to decline, Bitcoin will continue to rise,” said João Wedson, CEO of Alphractal.
BTCUSD is recorded in Bitfinex vs BTC price. (TradingView)
The chart shows the reverse nature of Bitfinex’s BTCUSD long.
Since 2021, all major BTC rallies, including those seen in November-December last year and the latest in early April, are consistent with the replacement BTCUSD long slides.
Meanwhile, the BTC bear trend, including the crash in 2022 and the drop from $100,000 to $75,000 seen earlier this year, occurred due to a surge in BTC/USD.
