Bitcoin buy positions on Bitfinex have spiked to levels not seen since February. Sell positions, on the other hand, are around their lowest level ever.
After experiencing compounding losses in the past week, Bitcoin rebounded significantly yesterday from a low of $6,600. Now trading at around $7,150, the bulls are trying to push this higher and it appears they have some momentum.
Data collected from Bitfinex indicates that bullish momentum is still building with sell orders plummeting on the exchange. As Mati Greenspan (@MatiGreenspan) pointed out, buy positions for BTC/USD spiked yesterday to levels not seen since February. On the other hand, sell positions for BTC/USD have dropped off and still remain stagnant, currently sitting at around an all-time low.
It's very clear what the market thinks of this latest selloff!
Bitcoin buy positions (blue line) are at their highest level since February, while bitcoin sell positions (orange) are near their lowest level ever.
— Mati Greenspan (@MatiGreenspan) November 26, 2019
Some are criticizing Greenspan for applying so much weight to Bitfinex, however. According to CoinMarketCap, Bitfinex boasts only about $2.3M of ‘real liquidity’ on its BTC/USD pair. So, extracting long-reach conclusions from these numbers is indeed a stretch as @Stepan_Kremzer points out in a reply.
Finex is not that important anymore
— Stepan Kremzer (@Stepan_Kremzer) November 26, 2019
Still, Greenspan believes that these indicators seem to be apparent across the entire market. He expects Bitcoin to move even higher suggesting that the local top is not in.
Despite the relatively choppy market, some major market players have been doubling-down on their Bitcoin holdings. Yesterday, BeInCrypto reported that one whale added 14,074 BTC to their Bitcoin holdings, bringing their total to 31,850 BTC ($231M). Two days ago, another whale moved some $337M worth of Bitcoin for just $0.40. In short, when in doubt, follow the money. Bitcoin’s on-chain activity seems quite active as of late.
It remains to be seen whether this spike in BTC/USD longs will hold, but it seems that many retail traders are expecting another leg upward. Bulls will try to capitalize on this momentum, but if they fail we could see a descent below $7,000 again.
Images courtesy of Twitter, Shutterstock.
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