With Bitcoin Longs on Bitfinex at Multi-Month Lows, Is the Market Poised for a Bounce?

In a surprising shift, the number of leveraged Bitcoin long positions on Bitfinex has dropped to its lowest level since December — a move that some market watchers say could foreshadow a fresh rally in BTC.

According to TradingView data, BTCUSD longs on Bitfinex have fallen to 47,691, a sharp decline from early April levels. The timing is notable: the reduction in long exposure comes on the heels of Bitcoin’s powerful run from $75,000 to new highs above $110,000.

Despite what appears to be waning trader confidence, analysts point to a consistent pattern — falling long interest on Bitfinex often precedes bullish price action.

“Historically, these dips in long positioning have aligned with the start of major rallies,” said João Wedson, CEO of analytics platform Alphractal. “It’s a signal that leverage is being cleared, not that demand is fading.”

This inverse relationship between leverage and price has played out repeatedly. In past cycles, surges in long positions frequently marked local tops, while drawdowns — like the one seen now — have tended to occur just before a new leg up.

“Bitcoin tends to climb a wall of worry,” Alphractal posted recently on X. “When traders get overly cautious or de-risk too aggressively, it often creates the perfect setup for another breakout.”

The current reduction in longs could signal exactly that. With fewer leveraged bets crowding the market, spot buyers may find less resistance pushing prices higher.

As of now, all eyes are on whether Bitcoin will repeat the pattern — and turn declining long interest into fuel for another move upward.