Trader loses $26 million in one week as Bitcoin slumps to $6,500

One trader has lost $26 million on Bitfinex this week during Bitcoin’s descent from $7,200 to $6,500.

According to the exchange’s leaderboard, a trader who goes by the username JOE007 has lost a grand total of $26,136,000 by trying to long Bitcoin while it’s in a downtrend.

The trader’s losses correlate with the steady rise in the amount of Bitcoin being locked in long positions on Bitfinex, with the amount rising to 47,157 BTC from 26,660 BTC on November 22.

With long positions at an all-time high, a long squeeze seems to be on the cards, although that would only be triggered if the trader decides to cut his losses or gets liquidated.

The same trader who is facing a huge loss was also at the top of the leaderboard during September, when he had an unrealised profit of $14.2 million.

Bitcoin has now been in a downtrend since June’s $14,000 high, with four lower highs marking the initial signs of a gruelling bear market.

The 2018 bear market saw Bitcoin drop from $20,000 to $3,150 with price action that looks eerily similar to this year.

If Bitcoin can bounce between the $6,400 and $6,500 region, there might be a small relief rally in store, but if it breaks below those levels it will almost certainly move towards levels of support at $5,900, $5,550, and $4,850.

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