Before the Rate Fell Below $32K, Bitfinex Bears Closed the Block of Bitcoin Shorts
On the Bitfinex platform, when the price of Bitcoin fell below $40,000, the number of short positions increased sharply. But most of them were closed even before the start of the correction.
As the price of Bitcoin continues to decline, analysts have spotted an interesting aspect that followed the fall.
For example, the sharp rise in short positions on Bitfinex last week.
On June 6, shorts rose from $1,380 to $6,700 at an average price of $36,150. On June 9, another $12,180 short positions were added. Then Bitcoin was trading at $37,050. From June 14-15, the shorts rose to $25,000, when Bitcoin averaged $40,100.
On June 18, the number of long positions exceeded the number of short positions on Bitfinex by at least 22,800 BTC. But even before June 22, about 87% of short positions were closed.
According to the chart on TradingView, when there was an increase in short positions, the $23,500 increase in contracts (green circles) had an average price of $37,625.
With Bitcoin trading below $37,000, short positions have been steadily closed over the past three days. But when the price of Bitcoin fell below $33,500, 17,000 short contracts were already closed. Therefore, it is unlikely that the average price of a cryptocurrency was below $34,500.
Hardly anyone would complain about the 8% market growth for a $73 million profit. However, on June 16, when Bitcoin hit $40,400, many of the shorts ended up underwater for $65 million.