Bitcoin Short Sellers are probably hoping the asset won’t return to $70,000 any time soon, with massive liquidations at risk if that happens.
CoinGlass data shows $1.67 billion in short positions will be liquidated if Bitcoin returns to $70,000 – the trading price as of June 8, according to CoinGlass data.
Bitcoin 4-hour price chart | Source: Tradingview
“There are crazy amounts of Short Bitcoin liquidations piling up at peak levels,” trader Ash Crypto admit on June 17 in an X post.
According to CoinMarketCap, compared to the current price of $65,746, Bitcoin needs to increase by 7% to reach $70,000.
“The market is incredibly bullish right now. Liquidation of stacked Bitcoin and ETH. Recovery is coming,” Discover Crypto CEO Joshua Jake said write on June 18.
Bitcoin OI* (open interest) has dropped 10.99% since reaching its all-time high on June 7 to $33.55 billion.
OI Bitcoin | Source: CoinGlass
However, Bitcoin OI is currently 82% higher than on January 1.
While a decrease in OI can indicate a worsening trend, an increase in OI implies increasing market interest.
Before June 7, Bitcoin’s OI increased by more than $2 billion in just 3 days, leading traders to believe that it could cause a sudden “strong swing” effect on the price.
Need to liquidate before new ATH for Bitcoin
Willy Woo, an analyst and creator of on-chain data source Woobull, has suggested the massive liquidation will help Bitcoin reach a new all-time high (ATH).
Source: Willy Woo
Woo already write on June 19:
“We still need a large amount of liquidation before we have any clarity on further price increases. I know it sucks, but BTC won’t break ATH until more pain and boredom occurs.”
Woo is not the only analyst to use the word “boring” to describe Bitcoin’s recent price action following the Bitcoin halving on April 20.
“Basically, it was the Boring Zone before the Banana Zone,” Julien Bittel, head of research at Global Macro Investor, wrote on June 19.
*OI (open interest) is a measure of the total value of all outstanding or “uncleared” futures contracts on exchanges, and is also an indicator of market price increases and sentiment. trader’s rationale surrounding a specific asset class.
You can see Bitcoin prices here.
Minh Anh
According to Cointelegraph
