Bitcoin short sellers are likely hoping that the asset will not return to $70,000 in the near future, as there is a significant amount of liquidations at stake if it does. According to CoinGlass data, a staggering $1.67 billion of short positions will be liquidated if Bitcoin returns to $70,000, a price level it has been trading below since June 8.
Bitcoin has seen a 3.23% decrease over the past seven days, as reported by CoinMarketCap. Crypto trader Ash Crypto acknowledged the large number of Bitcoin short liquidations accumulating at the topside on June 17. CoinMarketCap data shows that a 7.46% increase from its current price of $65,136 would bring Bitcoin to $70,000.
Discover Crypto CEO Joshua Jake expressed optimism about the market, stating that Bitcoin and ETH liquidations are stacked and a bounce is imminent. Bitcoin’s open interest, 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.
Despite the decrease in open interest, Bitcoin’s OI is still 82% higher compared to January 1. While a decline in open interest can indicate a negative trend, an increase suggests growing market interest. In the lead-up to June 7, Bitcoin’s open interest surged by over $2 billion in just three days, leading traders to anticipate 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 more liquidations are needed before further bullish activity can be expected. Woo is not the only analyst to describe Bitcoin’s recent price action as “boring” following the Bitcoin halving on April 20.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment decisions.