Bitfinex Leveraged Longs Hit 6-Month Low—Is Bitcoin Primed for a Breakout?

Bitcoin traders just flashed their least aggressive bullish bets since December—and history suggests that could spell upside ahead.

When leveraged longs dry up, it often means the market's washed out its weak hands. No more overeager degens chasing pumps with 100x margin. Just cold, patient capital waiting to pounce.

The last time Bitfinex longs were this sparse? BTC rallied 40% in two months. Coincidence? Traders hedging their institutional custody accounts will tell you yes.

Either way, the setup's clear: blood in the leverage streets usually means payday for hodlers. Just don't tell the CFTC—they're still trying to define 'crypto' in their 2023 annual report.

The chart shows the contrary nature of the BTCUSD longs on Bitfinex.

Since 2021, every major BTC rally, including those seen in November-December last year and the latest one from early April lows, has coincided with the slide in BTCUSD longs on the exchange.

On the other hand, BTC's bear trends, including the 2022 crash and the decline from $100K to $75K seen early this year, occurred as BTC/USD longs surged.