🚨 Interest in Short Positions on Bitfinex for BTC and ETH Hits Historic Lows!
Historically, when long positions on Bitfinex increase rapidly, the market tends to decline.
For BTC, we observe a strong inverse correlation: an increase in long positions generally leads to a decrease in price. Since March 2024, long positions have risen to 62,570 BTC, compared to only 418.5 BTC in short positions. This represents an impressive difference of 149 times in favor of longs.
In the case of ETH, the situation is quite different. Until 2022, there was a closer balance between long and short positions. However, since then, short positions have drastically decreased relative to longs. Interestingly, in 2021, when short positions surpassed long positions, ETH marked the cycle tops. Currently, there are 63,860 ETH in long positions versus 3,334 ETH in short positions, a difference of approximately 19 times.
While most exchanges show a higher volume of long positions, the ongoing increase in long positions on Bitfinex could indicate potential price declines and forced liquidations of traders. On the flip side, a price correction could signal a great opportunity for the cryptocurrency market!
Stay alert and monitor the changes to seize the best opportunities!
Twitter ('X'): @Alphractal
