Bitfinex BTC long positions increase, raising questions about a possible local bottom.
Although the price $BTC recently dropped to $53.7K, this may be a temporary bottom for Bitcoin. According to market analyst Marty Party, BTC may have bottomed as long positions on Bitfinex increase. He said:
SHOULD I BUY WHEN THE PRICE IS DOWN?
According to the analyst, BTC long positions on Bitfinex were triggered on August 28, suggesting that the asset could soon recover.
AMBCrypto's review of BTC long positions on Bitfinex and price also shows a positive correlation with recent bottoms.
According to the chart, BTC's bottom in April and July coincided with a spike in long positions on Bitfinex.
On average, BTC bottoms after about 15 days as long positions increase. We still need to see if September follows a similar trend.
According to Mayer Multiple, the current price of BTC may be undervalued. This could create a good buying opportunity for traders.
The Mayer Multiple measures the price of BTC against its 200-day Moving Average, which helps determine the relative value of BTC.
Historically, if this index is below 2.4, the market is considered undervalued and this is a good buying opportunity. Conversely, if it is above 2.4, it is a warning sign that the market may be overheated.
Currently, when this value is below 1 (blue), it coincides with the local bottoms in July and early August. This signal also appeared in late August, just as long positions on Bitfinex were triggered. This suggests that BTC may be undervalued at current prices.
The extreme fear in the market, represented by a reading of 23 on the Crypto Fear and Greed Index, is also a buy signal to seize the opportunity to own BTC at a discount.
