There has been a lot of interest in increasing the number of open long positions, which has now risen to its highest level in the previous 12 months, ever since the price of Bitcoin (BTC) began to show signs of resilience in the middle of June. Prior to the end of May 2022, Bitcoin’s long holdings had been ranging between 40,000 and 50,000 BTC long contracts; however, this number abruptly increased to above 80,000 contracts.
It also shows that Bitcoin is still the market leader, so cryptocurrency traders could feel more at ease placing a long position on the flagship asset rather than an altcoin. Due to the massive amount of long positions, the largest on-chain liquidations occurred on Friday, August 19, since Bitcoin’s decline from $30,000 to under $22,500 in June, when short sellers took advantage of the situation.
According to data gathered from Datamish, this figure than first surpassed 100,000 BTC long contracts on June 13, and after reaching a peak of 109,416 on June 17, it has remained at over 100,000 contracts ever since, now standing at 103,111 as of August 22.
Notably, since the middle of May, the longs (bull) indicator has grown significantly. It can now be regarded as a general 2-month trend of elevated long position interest because it is now hanging near its highest-ever registry.
The previous all-time high of 54,500 BTC contracts in longs, which occurred between June and July of 2021, can be used to gauge the magnitude of this shift. While it was less than 40,000 BTC long contracts a year ago in August 2021.
Michael van de Poppe, a well-known cryptocurrency market expert, had previously stated that a flip of $23,700 is a trigger for longs if a move to $24,000 occurs. Zooming out on the price chart for Bitcoin enables one to observe how many traders may have executed long bets as a result of the price movement of the cryptocurrency.
Its brief decline at the end of July gave the impression that the price floor was firmer than it actually was. Leverage traders may have been encouraged to undertake long trades as a result in the hope of more price growth.