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

Bitcoin traders are flashing their most cautious signals since December—and history suggests that's when things get interesting.

Leveraged longs on Bitfinex just slumped to their weakest level in half a year. For those keeping score: that's typically when sidelined money comes rushing back in. The last time positions were this thin? BTC ripped 40% in three weeks.

Of course, Wall Street 'experts' will claim they saw it coming—right after they finish explaining why last week's crash was 'totally predictable.'

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.