Bitcoin (BTC) and altcoins started the new week with sharp declines. BTC fell to $112,000, while Ethereum (ETH) fell to $4,200. This decline is thought to be due to the waning enthusiasm for the Fed's interest rate cut and investors' cautious approach to risky assets in the face of an uncertain macroeconomic environment. While there has been much analysis surrounding the decline, market analyst Omkar Godbole noted that Bitcoin long positions on Bitfinex have recently increased by 20%, pushing the price below its 100-day moving average. The analyst noted that BTC/USD long positions on Bitfinex often move in the opposite direction of Bitcoin’s price action, and said that increasing BTC long positions are a sign of a decline. Usually, an increase in long positions indicates strong buying pressure and an upward trend, but in this case, the increase in bullish bets presents a negative outlook for BTC’s price. At this point, the analyst cited historical data and said that historically, price declines have often been accompanied by increases in leveraged long positions in Bitcoin. “Historical analysis reveals that BTC/USD long positions on Bitfinex often move in the opposite direction of Bitcoin’s price action. For example, historical rises in BTC have coincided with declines in Bitfinex long positions, while price declines have occurred alongside increases in long positions. This contradictory pattern marks increasing long positions as a contrarian indicator rather than a direct bullish signal. Therefore, the current surge in Bitfinex Bitcoin longs calls for caution against a bearish trend, according to the analyst. *This is not investment advice. Continue Reading: This Indicator, Which Moves Opposite to the Bitcoin (BTC) Price, Foreshadowed the Drop Days in Advance! Here Are the Details…
