Here is the rewritten content in well-organized HTML format with all tags properly closed:
Bitfinex Traders Buy the Dip, Predicting Market Peaks and Troughs
As bitcoin’s (BTC) price continues to plummet, traders on crypto exchange Bitfinex are living up to their reputation of being dip buyers, offering some hope to battered crypto bulls given their track record of predicting market peaks and troughs.
Margin Long Positions Rise
The number of bitcoin bought on Bitfinex with borrowed cash, a bet that the BTC price will rise and leave the investor with a profit once they’ve repaid the loan, has risen to more than 60,000 BTC from 50,773 this month.
It’s jumped 2% in the past 24 hours alone, according to data from Coinglass and TradingView.
Whales Accumulate during Downtrends
Bitfinex traders are mainly whales – or holders of large amounts of bitcoin – who dabble with margin longs. They are known for accurately signaling bitcoin tops and bottoms and tend to accumulate during downtrends or rangebound markets, as they did in the middle of last year.
A Consistent Pattern
Looking at a five-year timeframe, margin longs have consistently increased holdings during price swoons and reduced exposure near market peaks. This pattern was evident during the 2021 and 2024 market tops.
Crypto Market Sentiment in Extreme Fear
As the crypto market tumbles, crypto market sentiment is in a state of extreme fear, according to Coinglass’ Crypto Fear & Greed Index. Over the past year, the market has only seen four days of extreme fear. It’s been dominated by greed and extreme greed for over 230 days.
Closing Thoughts
In conclusion, the increase in margin long positions on Bitfinex suggests that traders are betting on a rebound in the price of bitcoin, and their track record of predicting market peaks and troughs offers some hope to battered crypto bulls.
FAQs
Q: What is the current state of the crypto market?
A: The crypto market is in a state of extreme fear, with only four days of extreme fear seen over the past year and a dominance of greed and extreme greed for over 230 days.
Q: Who are the main traders on Bitfinex?
A: The main traders on Bitfinex are whales – or holders of large amounts of bitcoin – who dabble with margin longs.
Q: What is the trend in margin long positions on Bitfinex?
A: The number of bitcoin bought on Bitfinex with borrowed cash has risen to more than 60,000 BTC from 50,773 this month, with a 2% increase in the past 24 hours alone.
Q: What is the track record of Bitfinex traders?
A: Bitfinex traders have consistently increased their holdings during price swoons and reduced their exposure near market peaks, accurately signaling bitcoin tops and bottoms.
