Reports from Bitfinex suggest that the platform has, in the past two weeks, recorded an additional 15000 bitcoin longs worth about $110M. These stats have surpassed the only other such highs recorded in march 2018 and February 2019.
Despite the dramatic increase in Bitcoin buys, prices have remained unaffected, following months of the lowest prices that bitcoin has experienced all year. Currently, the shorts are nearly at an all-time low of about 6,000 bitcoin worth $42M, which is less than half the value of the longs.
The UK Election Might Have Contributed To the High Bitcoin Longs
Market experts predict that the ongoing UK elections might have something to do with the high longs. Europe is one of the most crypto-friendly regions in the world, and decisions made in the UK might affect cryptocurrency trends in the region.
Last month, Express reported bitcoin would most likely get a boost £1M after Brexit. According to the CEO of Easy Crypto Hunter Josh Riddett, people are considering bitcoin as an international safe-haven, especially during times of financial uncertainty. Bitcoin is currently being considered a more stable investment market.
Bitcoin longs reached a similar high for the first time in March 2018, which occurred at a time of the lowest local prices. The longs led to a slow rise in prices, which was shortly followed by a bearish run.
The opposite happened in the next longs that occurred in February 2019, during the cup and handle trend that was created by a flat movement in bitcoin prices. Since cup and handle trends always indicate the onset of a bullish run, it remains to be seen what will follow with local traders taking this development as an indicator of a soon to happen change.
Is Bitcoin Overdue For Bullish Run?
The increase in bitcoin buys indicates more people are betting on bitcoin to go bullish. Whether chance investors or experienced traders are doing these high longs, it’s a sign that bitcoin is headed for a positive trend in the long run. With that point in case, when anticipating a bullish run, more people are likely to buy than sell.
The gold crossover was confirmed by bitcoin 50-period moving average (MA), which crossed above the 100- period MA. The gold crossover happens when a short term MA breaks above a long term MA in either a daily weekly or monthly time frame and always indicates that a bull run is on the horizon.
Furthermore, according to a prediction made by prevision bitcoin in earlier in the year bitcoin as well as other cryptocurrencies were set for a good year. This was due to technology increased technology adoption, international acceptance, and media spotlight:
“We follow the market, mainly keeping an eye on the adoption of technologies instead of technical analysis. This is the exact approach that makes possible, in my opinion, to see important variations about prices in 2019 as well.”