The lack of price action could be attributed to a hidden sell order being placed, which would mean that in spite of the $34 million short position closing, price would remain pegged to the hidden order.
The amount of long positions on Bitfinex did increase from 23,800 to 26,000, which could suggest that a trader flipped their short position to long as a result of the ongoing market rally.
$BTCUSD shorts fallen off a cliff this morning. Strange to see how it hasn't made a difference in terms of price. Is a big player flipping their short position to long or is it simply more #manipulation? pic.twitter.com/AQDy1EqbMP
— Oliver Knight (@KnightCoinRivet) April 8, 2019
The amount of short positions on Bitfinex is now at its lowest point since March 2018, when optimism of a bullish reversal was still relatively high.
But now, 15 months after the bull market officially ended, a reversal seems to be in sight after Bitcoin’s weekly candle closed above the 200 exponential moving average (EMA) on the daily chart for the first time since July’s $8,400 top.
The fact that Bitcoin’s weekly candle closed above the $5,150 level of resistance was critical, with many suggesting that a retest of the broken support trendline at $5,900 will be the next level to take out after $5,350 falls to the bullish sentiment.
The $5,900 level was used as support six times during this bear market, with price eventually falling in November as Bitcoin hit new yearly lows.
As it was such a staunch level of support, it will act as a similarly difficult level of resistance if price continues to move to the upside.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.