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How Bitfinex Whales Signal Price Moves

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The movements of Bitfinex whales were reliable indicators of Bitcoin price movements themselves, as this analyst explained.

Bitfinex whales have shown intelligent financial behavior in recent years

In new mail On X, analyst James van Straaten discussed the trend in long Bitcoin positions on cryptocurrency exchange Bitfinex. Here is the chart the analyst shared:

The trend in the long positions on Bitfinex over the last few years | Source: @btcjvs on X

As can be seen in the chart above, Bitfinex long trades have shown some interesting changes in relation to the price of BTC over the past few years. It seems that movements on the platform generally come before the price movement in the asset.

“Bitfinex whales have been a great indicator of Bitcoin price movements,” Van Straaten points out. During the 2022 bear market, major investors on the platform opened massive bullish positions and stuck with them until 2024.

These investors then closed a significant number of positions during the rally that occurred in the first quarter of the year and what followed this trend was a decline in the price of the asset.

During the consolidation phase, Bitfinex whales gradually opened new buy positions. Once the final phase of the uptrend came, these huge entities once again showed smart financial behavior when they realized their profits.

Since this profit-taking event came from this group, Bitcoin price once again showed signs of downward momentum. So far, Bitfinex long positions have not reversed their downward trend, meaning that whales do not believe the current market conditions are suitable for placing new bullish bets.

Of course, it is possible that the Bitfinex whales turn out to be wrong about the cryptocurrency this time, but given that they have tended to be right about the market direction, an increase in their long positions could occur if BTC is forced to restart.

Speaking of cryptocurrency exchanges, the total exchange reserve, which is a measure of the amount of Bitcoin held by the wallets of all centralized exchanges, has increased recently, as noted by an analyst at CryptoQuant Quicktake. mail.

Bitcoin exchange reserve

How the the BTC Exchange Reserve has changed since the start of the year | Source: CryptoQuant

In general, one of the main reasons why investors use exchanges is for selling-related purposes, so a large amount of deposits does not tend to be good news for the price of cryptocurrency.

During the recent jump in exchange reserves, different platforms received a total of 20,000 BTC inflows. This could serve as another hurdle to Bitcoin’s attempt to resume bullish momentum.

Bitcoin price

Bitcoin has generally shown sideways movement over the past week with its price still trading around the $96,000 level.

Bitcoin price chart

Looks like the price of the asset has plunged over the last two days | Source: BTCUSDT on TradingView

Featured image by Dall-E, CryptoQuant.com, chart from TradingView.com

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