Bitcoin long positions hit record high on Wednesday

Long positions onBitcoin have hit an all time high on Bitfinex as they went up over 60% in a day. The move up is one of the most aggressive moves on the exchange. The previous all time high was hit in July 2021 with the introduction of the BTCUSD Longs product in August 2017.

The history of long positions on Bitfinex can give some insight into the state of the market and where we could be headed next. Some analysts are looking for the last time that longs peaked to suggest that there may be a respite in the downward movement of the market ahead.

A review of the BTCUSD Shorts product makes interesting reading. There is a long wick up to 7500 on the weekly chart before the weekly close of 3111. The short positions have closed positions because they took advantage of the market's volatility over the past week. When this is paired with the 60% increase in long positions, it shows bullish sentiment for the market overall.

Paolo Ardoino, the CTO of Bitfinex, said that the event accumulation suggested that Whales are acquiringBitcoin at a discounted price. He went on to say something.

Ardoino noted that long positions in futures markets are often offset by selling Bitcoin shorting on the spot market. This strategy can give you a hedge against market volatility depending on how you set your limit orders in the futures contract. A small miss-step in this strategy can lead to oversized losses, especially for those using margin or leverage. Over $500 million in long positions have been liquidated since May 9 and over $2 billion in the entire market. The below graph from Coinglass shows both long and short liquidations since May 1.