Analysis Firm Issues Local Bottom Warning for Two Major Altcoins

Cryptocurrency analysis firm Alphractal drew attention to Bitfinex leveraged position data in its latest assessment. The company stated that this data, which is often overlooked by investors, actually provides important clues about market direction. “When long positions increase on Bitfinex, the price usually decreases. When long positions decrease, the price usually increases,” Alphractal said. According to the analysis, investors often take wrong positions regarding the market direction, which causes liquidations and causes prices to move in the opposite direction. Related News: Critical Ethereum Report from JPMorgan: Can ETH Recover? Stating that long positions on Bitfinex are currently decreasing, Alphractal argued that the continuation of this trend could be a positive signal for prices. However, if long positions start to increase again, this could be a sign of a possible price decline. The company also announced that significant long position liquidations have occurred in ADA and LINK, while the highest liquidation potential is currently in short positions. It was also noted that in general, when large positions are liquidated in the cryptocurrency market, prices tend to form local bottoms. *This is not investment advice. Continue Reading: Analysis Firm Issues Local Bottom Warning for Two Major Altcoins