$BTC Bitcoin longs cut $106M — Are Bitfinex BTC whales turning bearish above $86K?

Despite Bitcoin (BTC) price reaching its highest level in over three weeks, traders on Bitfinex reduced their leveraged long (bullish) positions on margin contracts by more than $100 million between April 17 and April 19.

This reduction has led to speculation that Bitcoin whales may be anticipating a price correction or, at the very least, are not confident in further short-term gains. Let’s look closer at whether this could be the case.

Bitfinex Bitcoin whales remain bullish

Bitcoin surged above $86,000 on April 21 after US President Donald Trump openly discussed the possibility of replacing Federal Reserve Chair Jerome Powell. Trump criticized Powell for not acting swiftly enough to ease monetary policy.

Additionally, investors are increasingly risk-off due to concerns about a recession as the global trade war escalates, particularly given the ongoing uncertainty in US-China relations.

The rationale behind this profit-taking in margin markets is especially noteworthy, as Bitcoin’s price has remained below $90,000 since early March, prompting some investors to question the likelihood of a sustainable decoupling from traditional markets.

The S&P 500 index futures are trading 1.1% below their closing price on April 17, and rising political tensions in the US are further eroding investor sentiment.

Bitcoin margin longs on Bitfinex stood flat at 80,400 BTC between April 10 and April 17, indicating strong confidence from bullish traders as this level neared a seven-month high. However, even as BTC price reclaimed the $83,000 level, these traders chose to reduce their leveraged bullish positions by 1,250 BTC, equivalent to $106 million.

Historically, Bitfinex traders are known for rapidly opening or closing substantial Bitcoin margin positions, indicating that whales and large arbitrage desks are typically behind these movements.

Nevertheless, it is not accurate to suggest that Bitfinex whales have shifted to a bearish stance, considering their margin longs currently total 79,136