Bitcoin price analysis: Bullish bets on Bitfinex surge

Bullish Bitcoin long positions (BTC/USD longs) on the Bitfinex exchange have surged to 79,343, the highest level seen since November 2023. Historically, sharp increases in these long bets have served as a contrary indicator, often coinciding with price peaks and preceding market downturns, suggesting that the current period of choppy price action between $65,000 and $75,000 could resolve with a sell-off.

Analysts suggest this pattern occurs because the general market sentiment (the 'crowd') is often wrong at turning points. The inverse relationship is evident in past data, where BTC bottoms when Bitfinex longs peak and rallies as they decline. The current surge in longs, combined with macroeconomic concerns like geopolitical tensions and potential Fed rate hikes, reinforces the bearish outlook.

At the time of reporting, Bitcoin was trading around $66,400. The article cautions that past performance is not a guarantee of future results, but the metric strongly suggests deepening the current downtrend that started above $100,000 last year.

(Source：CoinDesk)