Bitfinex leveraged long positions hit a two-year high, indicating increased buying power for Bitcoin, but the bottom still needs to be confirmed

As Bitcoin declines, Bitfinex's margin long positions have risen to approximately 77,100 BTC, reaching a nearly two-year high. This trend indicates that there is still significant leveraged buying in the market during the downturn. Additionally, over the past six months, the size of Bitfinex's margin longs has increased by about 64%, which is typically seen as a signal that large players or high-risk appetite funds are continuing to accumulate during periods of market pressure.

However, historical experience shows that this indicator often expands during periods of market stress, but it does not necessarily mean that prices have bottomed out. Analysts believe that the current accumulation of margin longs reflects, on one hand, the market's behavior of buying on dips, and on the other hand, it may indicate that the market has not yet completed its final clearing, with short-term volatility risks still present.