When winterizing the valve on the blue/cold water line would be in a position to block cold water from going into the hot water tank and set up to bypassed the water so that it goes through the white hose. The valve on the red hose would also be in a position to block water in the white hose from going into the hot water tank but rather continue on through the system via the red house.
I have found that usually the handles on these values is set up so that the handle is in line with the hose where the water is intended to flow. The current positions appear to be how the valves would be positioned for winterizing, blocking water from going into the hot water tank but I'm not 100% sure of that so a test would be required to be sure of that.