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December 5, 2022
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Watching whales: Bitcoin longs close to the all-time high

Whales looking to buy Bitcoin

The transparency blockchain provides fundamental analytics that show when the whales are immersed in Bitcoin, although this does not give us any obvious position. However, whale behavior may still be the key to understanding price action.

Now the whales on Bitfinex amass one of the greatest collective positions of all time. Past data shows that these signals are rarely incorrect and by looking at what loads whales take can help to understand when the tide is about to turn.

In Finance, a whale is a market participant that trades with sufficient size and capital to make a big move in price action. It’s these whales that sell at Bitcoin’s recent top price, while the rest of the market is still hoping for a high. And it’s also these whales that are now going after the main cryptocurrency.

Certain cryptocurrency trading platforms offer advanced products such as derivatives, leverage or longs and shorts positions. Instead of buying and selling, traders can go short on hedge holdings, or try to add to long positions with each dip – the strategy is close.

Tarders on the pioneering Bitfinex trading platform are overwhelmingly into longs.

Source: btcusdlongs on TradingView.com

Bitfinex is home to many whales, the most famous, Joe007, which gained notoriety for taking long BTC positions at $6,500 in 2019, selling the currency in late 2020.

With the metric back near the all-time high, it’s clear that whales expect the price of Bitcoin to go up. But are they right?

Looking back, each time long positions hit the green box above, Bitcoin saw a major bounce dating all the way back to the bear market. Each “bottom” was marked by an influx of longs.

Bitfinex traders once again bet big in December 2018 and December 2019. It was only on ‘Black Thursday’ that these whales were wrong, but the black swan event shocked the world and no one saw it.

The last time the yearnings were this heavy, the price of Bitcoin went from $12,000 to $64,000 in less than a year. With these whales back taking such a sizable long position, is it indicative of a leap and new highs? Only time will tell, but we will continue to closely watch the behavior of the whales.

Watching whales: Bitcoin longs close to the all-time high 23

Source: Blockchain Whispers

It’s worth noting that the rest of the market isn’t as optimistic as Bitfinex’s. However, the platform itself is where some of the biggest deals are made due to the low leverage that the platform provides. While many players prefer 100x leverage, whales keep strong capital protection ideas

Source: Bitcoinist

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