Leveraged long positions on Bitfinex have dropped to their lowest levels since December 2024, a shift that analysts say may be laying the groundwork for a renewed rally in Bitcoin.
According to data from TradingView, BTCUSD longs on the exchange have fallen to 47,691 contracts. The decline comes after a multi-week cooldown in positioning that followed Bitcoin’s sharp rise from $75,000 to over $110,000 in April.
João Wedson, CEO of crypto analytics firm Alphractal, believes this drawdown is not a sign of market weakness but a setup for bullish continuation. “The pattern is clear: when Bitfinex longs drop sharply, Bitcoin tends to climb shortly after,” he explained.
This inverse correlation has played out in multiple historical instances. In late 2023 and again in Q1 2025, long liquidations or reductions preceded major upward price movements, as overly leveraged positions were cleared from the system.
“Traders often interpret rising long interest as bullish, but the opposite is often true — especially when positioning becomes crowded,” Alphractal noted in a recent X post. “A decline in longs typically removes downside pressure and improves price stability.”
The unwinding of leverage also suggests a healthier foundation for future price action. With fewer traders exposed to high-risk long positions, Bitcoin may be better positioned to climb on organic demand rather than speculative fuel.
As the crypto market continues to consolidate above $105,000, analysts are closely watching whether this reduction in Bitfinex longs will once again act as a precursor to the next leg up.
