Bitcoin short sellers are likely hoping that the asset doesn’t reach $70,000 in the near future, as there is a significant amount of liquidations at stake if it does. CoinGlass data reveals that a staggering $1.67 billion of short positions will be liquidated if Bitcoin returns to $70,000, a price level it hasn’t surpassed since June 8. Bitcoin has experienced a 3.23% decline over the past week.
On June 17, pseudonymous crypto trader Ash Crypto acknowledged the massive accumulation of Bitcoin short liquidations at the top price levels. According to CoinMarketCap, a 7.46% increase from Bitcoin’s current price of $65,136 would bring it to $70,000. Discover Crypto CEO Joshua Jake expressed confidence in the bullish market, stating that Bitcoin and ETH liquidations are stacked and a bounce back is imminent.
Bitcoin’s open interest (OI), which refers to the total value of all outstanding or unsettled Bitcoin futures contracts across exchanges, has dropped by 10.99% since reaching its all-time high on June 7, now standing at $33.55 billion. However, compared to January 1, Bitcoin OI is still 82% higher.
While a decrease in open interest could indicate a declining trend, an increase suggests growing market interest. In the lead-up to June 7, Bitcoin’s OI surged by over $2 billion in just three days, leading traders to believe that it may trigger a sudden “whipsaw” effect on its price.
Crypto analyst Willy Woo believes that a significant liquidation wipeout is necessary for Bitcoin to reach new all-time highs. He stated that there needs to be a sufficient number of liquidations before further bullish activity can occur. Woo emphasized that Bitcoin won’t break its all-time highs until more pain and boredom play out in the market.
Many analysts, including Julien Bittel, the head of research at Global Macro Investor, have described Bitcoin’s recent price action as “boring” following the halving event on April 20. Bittel referred to this period as “The Boring Zone” before the anticipated “Banana Zone.”
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and make informed decisions when it comes to investments and trading.