{"id":122376,"date":"2020-01-07T05:30:16","date_gmt":"2020-01-07T05:30:16","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=122376"},"modified":"2020-01-07T03:44:45","modified_gmt":"2020-01-07T03:44:45","slug":"key-data-shows-bitcoin-uptrend-is-at-risk-as-bitfinex-longs-suddenly-plunge","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/key-data-shows-bitcoin-uptrend-is-at-risk-as-bitfinex-longs-suddenly-plunge\/","title":{"rendered":"Key data shows Bitcoin uptrend is at risk as Bitfinex longs suddenly plunge"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Bitcoin has rocketed to a 30-day high after posting one of its largest intraday rallies in weeks, but closer inspection suggests the sudden breakout may not mark the start of an uptrend.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The rally, which began around 9 pm UTC Monday, injected more than $4 billion into market capitalization over five hours and took BTC to just below the $8,000-mark. But as it stands, Bitcoin is yet to clear the highest high of its weeks-long consolidation, made November 29 at $7,933.<\/span><\/p>\n<figure id=\"attachment_122377\" aria-describedby=\"caption-attachment-122377\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.tradingview.com\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-122377 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-8.40.21-AM-1024x450.png\" alt=\"Bitcoin proce\" width=\"1024\" height=\"450\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-8.40.21-AM-1024x450.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-8.40.21-AM-300x132.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-8.40.21-AM-768x338.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-8.40.21-AM-1536x675.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-8.40.21-AM-2048x900.png 2048w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-122377\" class=\"wp-caption-text\">BTCUSD 1HR, Bitfinex &#8211; TradingView<\/figcaption><\/figure>\n<p>The rally appears to have catalyzed a shift toward positive sentiment in the crypto market, but not convincingly. The Crypto Fear & Greed Index is up by two points out of a hundred after the rally, from 39 to 41.<\/p>\n<h2>Bitfinex longs start to deteriorate<\/h2>\n<p>The number of long positions on Bitfinex \u2014 a figure that in November hit a <a href=\"https:\/\/cryptoslate.com\/bitcoin-longs-hit-record-high-on-bitfinex-long-squeeze-incoming\/\">historic high<\/a> \u2014 has finally begun to erode. This suggests Bitcoin's recent uptrend appears to have been a chance for long-holders on the Hong Kong-based exchange to unload their positions and take profit.<\/p>\n<figure id=\"attachment_122404\" aria-describedby=\"caption-attachment-122404\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.tradingview.com\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-122404 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-10.04.20-AM-1024x650.png\" alt=\"Bitfinex BTC Longs\" width=\"1024\" height=\"650\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-10.04.20-AM-1024x650.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-10.04.20-AM-300x190.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-10.04.20-AM-768x487.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-10.04.20-AM-1536x975.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-10.04.20-AM.png 1774w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-122404\" class=\"wp-caption-text\">BTCUSD longs, Bitfinex &#8211; TradingView<\/figcaption><\/figure>\n<p>If this trend continues and Bitfinex long-holders exit their positions at this level, short-term sell pressure could be fierce indeed. Nearly <a href=\"https:\/\/blockchainwhispers.com\/bitmex-position-calculator\/\">$320 million<\/a> worth of long positions are currently on the Bitfinex order books, skewing the platform overwhelmingly in favor of the bulls (currently longs account for <a href=\"https:\/\/blockchainwhispers.com\/bitmex-position-calculator\/\">91.3 percent<\/a> of all positions on Bitfinex).<\/p>\n<h2>Volumes and open interest still not convincing<\/h2>\n<p><span style=\"font-weight: 400;\">Hourly volumes on margin trading platforms BitMEX and Bitfinex leaped to their highest since mid-December, however, in terms of gains on higher timeframes, the volumes have been insignificant. This casts doubt on the chances of a continued uptrend.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Overall volumes in the Bitcoin market are still down about <a href=\"https:\/\/cryptoslate.com\/record-low-bitcoin-volumes-and-volatility-signal-uncertainty-behind-btcs-latest-rally\/\">90 percent<\/a> from their levels of June 2019, and the volumes driving the latest rally are a fraction of those that marked the start of BTC's months-long rally from April ($4,000) to June ($13,800) last year.\u00a0<\/span><\/p>\n<figure id=\"attachment_122391\" aria-describedby=\"caption-attachment-122391\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/www.tradingview.com\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-122391 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-9.36.48-AM-1024x731.png\" alt=\"BTC volumes\" width=\"1024\" height=\"731\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-9.36.48-AM-1024x731.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-9.36.48-AM-300x214.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-9.36.48-AM-768x549.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-9.36.48-AM-1536x1097.png 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/Screen-Shot-2020-01-07-at-9.36.48-AM.png 1582w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption id=\"caption-attachment-122391\" class=\"wp-caption-text\">XBTUSD volumes &#8211; TradingVIew<\/figcaption><\/figure>\n<p><span style=\"font-weight: 400;\">Data from the futures markets also suggests the latest rally may not have further legs and that a retracement could be in order.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Critically, all of the futures trading platforms have seen very little increase in the way of open interest \u2014 an indication of new buyers coming into the marketplace. In recent days the Bakkt and CME monthly contracts, as well as the perpetual XBTUSD BitMEX contract, have seen reasonable bounces in volume, but not the double, or triple-digit hikes in open interest percentages one would expect at the start of a strong uptrend.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin has rocketed to a 30-day high after posting one of its largest intraday rallies in weeks, but closer inspection suggests the sudden breakout may not mark the start of an uptrend. The rally, which began around 9 pm UTC Monday, injected more than $4 billion into market capitalization over five hours and took BTC [&hellip;]<\/p>\n","protected":false},"author":175,"featured_media":122420,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,39],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Key data shows Bitcoin uptrend is at risk as Bitfinex longs suddenly plunge<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/key-data-shows-bitcoin-uptrend-is-at-risk-as-bitfinex-longs-suddenly-plunge\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Key data shows Bitcoin uptrend is at risk as Bitfinex longs suddenly plunge\" \/>\n<meta property=\"og:description\" content=\"Bitcoin has rocketed to a 30-day high after posting one of its largest intraday rallies in weeks, but closer inspection suggests the sudden breakout may not mark the start of an uptrend. The rally, which began around 9 pm UTC Monday, injected more than $4 billion into market capitalization over five hours and took BTC [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/key-data-shows-bitcoin-uptrend-is-at-risk-as-bitfinex-longs-suddenly-plunge\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-01-07T05:30:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-01-07T03:44:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/01\/bitcoin-plunge.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jonnie Emsley\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jonnie Emsley\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/key-data-shows-bitcoin-uptrend-is-at-risk-as-bitfinex-longs-suddenly-plunge\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/key-data-shows-bitcoin-uptrend-is-at-risk-as-bitfinex-longs-suddenly-plunge\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/#person\",\"name\":\"Jonnie Emsley\",\"url\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/jonnie-emsley\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/10\/author-jonnie-emsley.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/10\/author-jonnie-emsley.jpg\",\"caption\":\"Jonnie Emsley\"},\"jobTitle\":\"Contributor\",\"description\":\"Jonnie is a writer and blockchain enthusiast based in Ho Chi Minh City, Vietnam. 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