Bitfinex Bitcoin longs total $6.8B while shorts stand at $25M — Time for BTC to rally?

Key with you:

• Bitfinex Margin Longs fell by 18%, although the price of bitcoins increased by 24% in 30 days.

• $ 6.8 billion in long positions is far from showing the current $ 25 million in shorts.

• Bitcoin options and BTCs point to the trust of institutional investors.

Bitcoin (BTC) The price over the last 30 days has risen by 23.7%, but traders on Bitfinex have reduced their long positions by more than 18,000 BTCs during this time. This wave of profit markets has led to speculation that professional traders may not be fully confident at the current price level of $ 104,000.

Bitfinex Margin Longs dropped to 65 889 BTC from 80 387 BTC between April 16 to 16 May. This shift means reversal from the strong demand in the bull margin, which was observed between mid -February and in mid -March, when the price of bitcoins dropped to $ 82,500 from $ 97,600. The current decline in longs on the margin is probably a sign of healthy profit, not a turn towards bear dynamics.

The reason for this step is not quite clear, because bitcoins jump over $ 100,000 occurred on May 8, about three weeks after the margins have improved for a long time. Yet it would be wrong to propose that the whales of Bitfinex received bear outlook. Their margins now desire a total of $ 6.8 billion, while Kraids on the edge Stand at only $ 25 million, showing the main gap between bulls and bear positions.

This difference is mainly due to the low interest rate Bitfinex with a low 0.7% interest rate for trading margins. On the other hand, those who use the lever for 90 days Bitcoin futures 6.3% of the annual bonus. This gap creates opportunities for arbitration.

For example, you can open the Bitcoins Longs on the edge while selling the equivalent position in the futures BTC to benefit from Rate difference. Margins also tend to have longer time frames and higher risk tolerance than average investors, so their position changes are less affected by short -term prices.

Whales steady by $ 105,000 resistance as BTC ETFS Drive Optimism

In order to exclude factors limited to margin markets, it is useful to look at Bitcoin. If traders expect correction, the demand for PUT (sale) will increase, shifting 25% delta bevels above 6%. In the bull periods, these metrics usually decrease below -6%.

The current -6% of Delta Skew shows confidence in the cost of bitcoins, although the data in the last two weeks has been from neutral to slightly bull. This shows that whales and market creators are not particularly interested in repeated failures that break over the $ 105,000 barrier.

Related: The evolving view of Bitcoin traders on the role of BTC in each portfolio strengthens $ 100,000

Some of the increased optimism, despite the lower demand for levers positions, come from A clean tide of $ 2.4 billion For us in between 1 May and 15th May, it mimics funds traded with bitcoins (ETF). Therefore, the decline in Bitcoin’s Longs margin does not mean that institutional traders are changing bear, especially when considering BTC options.

Although this data does not reveal whether Bitcoins are closer to an interruption of over $ 105,000, the fact that there is $ 6.8 billion in the lever range, clearly shows that professional traders remain very optimistic about price outlook.

This article is for general information purposes and is not intended and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are the author himself and do not necessarily reflect or present the opinions and opinions of Caintelegraph.