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Interest in Bitcoin Long Positions Peaks Amid Crypto Market Selloff

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Interest in Bitcoin Long Positions Peaks Amid Crypto Market Selloff

Jhere has generated a lot of interest in increasing the number of long positions opened, which has now reached its highest level in the previous 12 months, since the price of Bitcoin (BTC) began to show signs of resilience to the mid-June . Before the end of May 2022, The long holdings of Bitcoin ranged between 40,000 and 50,000 BTC long contracts; however, this number suddenly increased to over 80,000 contracts.

It also shows that Bitcoin is still the market leader, so cryptocurrency traders might feel more comfortable going long in the flagship asset rather than an altcoin. Due to the massive amount of long positions, the largest chain liquidations occurred on Friday, August 19, since The decline of bitcoin from $30,000 to below $22,500 in June, when short sellers took advantage of the situation.

According to data collected from Datamishthis figure first exceeded 100,000 BTC long contracts on June 13, and after peaking at 109,416 on June 17, it has remained at over 100,000 contracts since, now standing at 103,111 as of August 22.

Notably, since mid-May, the long (bullish) indicator has risen significantly. It can now be seen as a general 2 month trend of high interest for longs as it is now near its all time high.

The previous all-time high of 54,500 BTC contracts in longs, which occurred between June and July 2021, can be used to gauge the magnitude of this change. While there were less than 40,000 BTC long contracts a year ago in August 2021.

Michael van de Poppe, a well-known expert in the cryptocurrency market, had previously declared that a reversal from $23,700 is a trigger for longs if a move towards $24,000 occurs. Zooming out on the price chart for Bitcoin shows how many traders may have executed long bets due to the price movement of the cryptocurrency.

Its brief dip in late July made the price floor look firmer than it actually was. Leveraged traders may have been encouraged to go long in the hope of more price growth.

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