The movements of the Bitfinex whales have been reliable indicators of the movement of the price of Bitcoin itself, as explained by this analyst.
Bitfinex Whales Have Shown Smart Money Behavior In Recent Years
In a new post on X, analyst James Van Straten discussed the trend in long Bitcoin positions on cryptocurrency exchange Bitfinex. Here is the chart shared by the analyst:
The trend in the long positions on Bitfinex over the last few years | Source: @btcjvs on X
As seen in the graph above, Bitfinex’s long positions have shown interesting changes in the value of BTC over the past few years. It may seem that movement in the area usually comes before the price action of the commodity.
“Bitfinex whales have been a major indicator of BTC price movements,” Van Straten noted. During the bear market of 2022, large investors on the platform opened large positions and remained strong in them until 2024.
These investors then closed a significant number of positions during the meeting held in the first quarter of the year and what followed this trend was a drop in the price of the asset.
During the consolidation phase, Bitfinex whales gradually opened new long positions. When the latter leg of the bull run came, these ridiculous companies again showed good behavior of money as they saw their profits.
Since this profit-taking event has emerged from this cluster, the price of Bitcoin has once again shown signs of bearish momentum. So far, Bitfinex’s long positions have not reversed their decline, which means the whales don’t think the current market conditions are good enough to set up a new bullish bet.
Naturally, it is possible that the Bitfinex whales may appear to be wrong about the cryptocurrency at this time, but considering that they have tended to be right about the direction of the market, it may be necessary to blow their long positions if BTC is right. restart its operation.
Speaking of cryptocurrency exchanges, the total Exchange Reserve, the average amount of Bitcoin held by the wallets of all centralized platforms, has registered an increase recently, as an analyst said in a CryptoQuant Quicktake post.
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 the purpose related to sales, so a large number of deposits does not tend to be good news for the price of cryptocurrency.
During the recent Exchange Reserve jump, various platforms received a total of 20,000 BTC in revenue. This could be another obstacle in Bitcoin’s attempt to resume bullish momentum.
BTC price
Bitcoin has shown sideways movement over the past week as its price is still trading around $96,000.
Looks like the price of the asset has plunged over the last two days | Source: BTCUSDT on TradingView
Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
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