The total number of long positions for Bitcoin has skyrocketed with 40% over the last few weeks. It has reached a 10-month high on the popular cryptocurrency exchange, Bitfinex. This could be indicative of an incoming long squeeze, which might bring Bitcoin’s price even lower.Bitcoin Long Positions SurgingLong positions placed on the popular cryptocurrency exchange, Bitfinex, have experienced a serious increase as of late. Almost 35,000 positions are placed at the time of this writing. For comparison, this number was below 25,000 in the middle of November.The last time Bitcoin long positions on Bitfinex were at such a high level was in the first quarter of the year. Ever since then, the number has been sufficiently lower, reaching a yearly bottom in May when it dropped below 18,000.Bitcoin
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The total number of long positions for Bitcoin has skyrocketed with 40% over the last few weeks. It has reached a 10-month high on the popular cryptocurrency exchange, Bitfinex. This could be indicative of an incoming long squeeze, which might bring Bitcoin’s price even lower.
Bitcoin Long Positions Surging
Long positions placed on the popular cryptocurrency exchange, Bitfinex, have experienced a serious increase as of late. Almost 35,000 positions are placed at the time of this writing. For comparison, this number was below 25,000 in the middle of November.
The last time Bitcoin long positions on Bitfinex were at such a high level was in the first quarter of the year. Ever since then, the number has been sufficiently lower, reaching a yearly bottom in May when it dropped below 18,000.
As CryptoPotato reported back in May, long positions were gaining serious momentum, and Bitcoin’s price experienced a short-term decline. On May 16th, Bitcoin reached $8390 at one point, but as the opened long positions increased, Bitcoin dropped. The price plunged to $6250, which was a total decrease of 25% in just hours.
It’s also worth noting another example from April this year. Bitcoin’s short position dropped with 20%, while the long positions were increasing. However, the price of Bitcoin remained relatively stable and it ranged tightly from $5,100 to $5,300 in the next few days.
Long Squeeze In The Near Future?
Long positions are generally opened when traders believe that the price of an asset, in this case, Bitcoin, will increase. Yet, as seen from the examples before, a radical surge in the number of long positions might trigger long squeezes that drop the price. With so many long positions at the moment, it’s interesting to see if the market will react.
Bitcoin is currently trading at around $7,300 and the overall trend appears to be bearish, after the volatile November. Another factor that may play a role is the monthly candle that closed in the red, as well.
In any case, it would be quite intriguing to see if the rising number of open long positions will impact the price, even though a direct effect hasn’t been proven yet.