Bitcoin and Altcoins Experience Sharp Declines
Bitcoin (BTC) and altcoins began the week with significant drops. BTC fell to $112,000, while Ethereum (ETH) dropped to $4,200.
This decline is attributed to decreased enthusiasm for the Fed’s interest rate cut and a cautious investor approach to risky assets amid an uncertain macroeconomic environment.
Market analyst Omkar Godbole noted a recent 20% increase in Bitcoin long positions on Bitfinex, coinciding with the price dipping below its 100-day moving average.
Godbole highlighted that BTC/USD long positions on Bitfinex frequently move oppositely to Bitcoin’s price action, indicating that rising long positions could signal a downward trend.
Typically, an increase in long positions denotes strong buying pressure and a bullish trend; however, in this instance, the rising bullish bets suggest a negative outlook for BTC’s price.
The analyst cited historical data, stating that price declines often accompany increases in leveraged long positions for Bitcoin.
“Historical analysis shows BTC/USD long positions on Bitfinex typically move counter to Bitcoin’s price. For instance, rises in BTC have corresponded with declines in Bitfinex long positions, while price drops have happened with increases in long positions. This contradicting pattern makes long positions a contrarian indicator instead of a direct bullish signal.”
Thus, the current surge in Bitfinex Bitcoin longs urges caution against a potential bearish trend, according to the analyst.
*This is not investment advice.
Comments (3)
Juan Pastuzaca
15:49 - 22/09/2025
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Stephen
14:14 - 22/09/2025
Honestly market is bleeding
Stephen
14:14 - 22/09/2025
Honestly market is bleeding