Bitcoin (BTC), which reached as high as $76,000 in March, fell to around $66,000 with the pullback that began on Friday.
BTC, which traded around the $67,000 level in the new week, still seems to be at risk of a decline.
Crypto analyst Omkar Godbole stated that BTC long positions on Bitfinex have reached their highest level since November 2023. This could historically be interpreted as a bearish signal.
A bearish signal for Bitcoin (BTC)!
The analyst noted that Bitcoin (BTC/USD) long positions on Bitfinex have reached their highest level since November 2023.
According to the analyst, while an increase in long positions generally reflects a bullish trend among investors, in the past it has coincided with price declines, functioning as a counter-indicator.
“Historically, sudden surges in Bitfinex BTC/USD long positions have often coincided with price peaks and preceded selling waves, acting as a counterintuitive indicator.”
The analyst cited an example, noting that in the fourth quarter of last year, when long positions on Bitfinex increased by approximately 30%, the spot price of Bitcoin fell by about 23%. However, there is no guarantee that a price drop similar to the past will not happen again.
The analyst concluded by saying, “The recent increase in long positions, when considered alongside macroeconomic factors, indicates an increased risk of a deepening bear market in Bitcoin,” and warned investors.
*This is not investment advice.