Exit On Bullish Positions: BTC Traders Are Exiting Long Positions

There is an apparent exit on bullish position in BTC trading now, as the latest cryptocurrency news suggest. With a number of traders who had bullish positions on Bitcoin that is now declining, we can see that the next big move on the crypto markets is yet unknown.

However, charts on Bitfinex show an almost parabolic rise in long positions and showed that investors expected to profit from a rise in the Bitcoin price are confused about the prices now. In fact, details between November 23 and December 23 show that an exit on bullish positions was not even the case – as the BTC’s long positions surged from 24,839 to 47,720.

What happened later was the very opposite. As Bitcoin dipped below $6,500, we saw a major exit on bullish positions and analysts backed out before BTC hit the $7,000 levels again, calming the bearish bias. Since then, the major cryptocurrency is trending sideways with a strict trading zone.

The first dip in the overbought long signals on Bitfinex started on December 24. The four days after this saw the plunge expanding further, showing a lack of momentum in Bitcoin spot markets. All of this might have prompted traders to exit their bullish positions and avoid a huge potential loss.

According to one market analyst, the exit on bullish positions is not looking like it is going to stop. This is what he shared even before the number of exits increased.
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“The downside in long positions is not looking like it is going to stop,” said Carl. “So we are getting a Long Squeeze. Traders will have to cover their longs by selling, which means there will be an increased selling pressure [in the bitcoin spot market].”

The prediction also coincided with a breakout sentiment arising from Bitcoin and its low trade volumes. Since the first long breakout on BitFinex, the cryptocurrency is fluctuating in a circa 5% range. It is defined by $7,426 resistance and $7,053 support right now.

The Bitcoin price news also show that the upside attempts are capped by the 50-daily moving average (MA) which shows that as long as the price stays below the orange curve in the chart above, it has a higher chance of plunging towards the red areas.

Some analysts even predicted that long and short metrics are meaningless in a speculative Bitcoin market like the one right now.