Bitfinex trader profits $7 million as Bitcoin begins bearish descent

One trader has profited significantly from Bitcoin's descent from $9,200 to $8,250 over the past week with $7 million in unrealised profit

Bitfinex trader JOE007 has gained a staggering $6.95 million in unrealised profit by trading Bitcoin this week, according to the exchange’s leaderboard.

In December, Coin Rivet reported on the same trader’s woeful loss of $26 million as he found himself caught in a long position during Bitcoin’s decline to $6,800.

However, as Bitcoin began to claw its way back up after the turn of the year, his profit and loss flipped into the positive.

Bitcoin is now more than 10% down in the past five days, indicating that JOE007 has been holding a short position during the decline.

The daily candle closed beneath the $8,450 level of support yesterday as Bitcoin moves closer towards the 200 exponential moving average (EMA), which is currently at $8,200.

Another close below this level would almost certainly result in a slump towards the $7,800 level of support, which will likely provide a period of calm as it did throughout October.

However, if Bitcoin begins to rally to the upside with a bounce from the 200 EMA, it will bring upside price targets of $8,450, $8,830, and $9,050 into play moving into the weekend.

Many thought that the recent talk of a central bank digital currency being launched by the Bank of England and five other central banks would spur the price of Bitcoin to the upside, but thus far it’s had the opposite effect.

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