Short sellers of Bitcoin are likely holding their breath, hoping the asset doesn’t rebound to $70,000 anytime soon. According to CoinGlass, approximately $1.67 billion in short positions are at risk of liquidation if Bitcoin surpasses this price level. Bitcoin has remained below $70,000 since June 8, according to CoinGlass data, heightening the stakes for these short positions.
“Pseudonymous crypto trader Ash Crypto noted on June 17 that there is a significant buildup of Bitcoin short liquidations at the $70,000 level,” according to CoinMarketCap. This represents a 7.46% increase from its current price of $65,136.”Joshua Jake, CEO of Discover Crypto, expressed optimism on June 18, noting that markets are currently very bullish. He mentioned that Bitcoin and ETH liquidations are accumulating and suggested that a bounce is imminent.”
“Bitcoin Open Interest (OI), which represents the total value of all outstanding Bitcoin futures contracts across exchanges, has decreased by 10.99% since hitting its peak on June 7. It now stands at $33.55 billion.”
Bitcoin’s Open Interest (OI) is currently 82% higher compared to the beginning of the year, January 1.
A decline in open interest can suggest a weakening market trend, whereas an increase indicates heightened market interest.
Earlier this month, leading up to June 7, Bitcoin’s OI surged by over $2 billion in just three days, prompting speculation among traders that it could trigger a sudden “whipsaw” effect on its price.
Liquidations Required Before Bitcoin Reaches New All-Time High
Crypto analyst Willy Woo, creator of the onchain data resource Woobull, argues that a significant liquidation wipeout is necessary to pave the way for Bitcoin to achieve new all-time highs.
“We still require a substantial amount of liquidations before we receive the green light for further bullish momentum,” Willy Woo stated on June 19.
