Crypto exchange Bitfinex is known for having large-scale Bitcoin (BTC) whale activity. As per latest data, whales are rapidly closing the long Bitcoin (BTC) positions for profit.
The major Bitcoin (BTC) on Bitfinex have begun taking profit, and these whales have started to offload long Bitcoin positions. This behavior is commonly seen during the later stages of a bullish move.
The whales are collecting huge profits from the bull market in Bitcoin price to transition into a new market cycle.
The data shows that the BTC/USD longs have dropped sharply recently, to similar lows last seen around October last year, during the previous round of maximalism. Despite the widespread sell-offs in the long Bitcoin positions, there are still 67,000 long BTC positions on Bitfinex. This clarifies that the whales are slowly leaving the market, as a large exposure is slowly decreasing to no exposure at all.
The BTC/USD shorts show a relatively lower activity, highlighting a pause in bearish sentiment despite the profit-taking. The absence of significant short pressure suggests that the wider market sentiment remains positive.
This aligns with the market statistics showing a similar consolidation period that occurred in October last year, alongside the whale profit-taking phase. After the consolidation, Bitcoin continued following the upward trajectory, showcasing the strength of the present bull trend.
As the historical data suggests, after a strong Bitcoin bull run and consolidation, altcoin market usually sees huge capital inflows in what is known as “altseason.” Along with mentioning the current Bitcoin whale profit taking, there has been an increase in activity in the altcoin sector.
Moreover, many “meta” narratives are expected to circulate widely in the market during this phase, boosting specific sectors in the altcoin space, such as DeFi, gaming, L2s, and AI tokens.
