Bitcoin longs outperform shorts on Bitfinex but bullish signals were not identified
According to a recent report, it was observed that the capital flowing against Bitcoin in terms of short trading declined severely over the last few months. The drop was witnessed on Bitfinex and the total BTC shorts on the exchange was yet to recover some of its early year margins.
Bitmex was the other exchange which entertained such form of trading, and the same scenario was seen on the exchange as well. Amount of capital placed on bitcoin longs is currently more than the amount placed on bitcoin shorts.
According to datamish.com, an estimated $200 million worth of BTC [around 20,000 at current BTC prices] was placed on the short margin on Bitfinex which witnessed a major drop in May. Similar drops took place on a couple of occasions afterward and the final slump in July subsequently brought the total margin short below 5000 BTC.
It was believed that the nature of these buy-outs suggested exertion of a single user or a small organized group. The drops also did not occur during rapid price fluctuations as traders may have closed their trades intentionally after paying off losses or getting paid in gains.
The trade against Bitcoin shorts asserted a sense of bullish trend but interestingly the capital going out did not move into long position of Bitcoin. Investments in long positions exhibited progressive growth since July but the increment has been less than 10,000 BTC and it did not balance the estimated 20,000 BTC that came of the depleting BTC shorts.
At press time, the total margin longs on Bitfinex was 27.4K BTC and the total short margins were recorded to be 12.64K BTC. At current prices, over $300 million were bet on Bitcoin longs whereas less than $130 million were bet on Bitcoin shorts by traders.