Bitcoin Short Positions Worth $1.67B Face Liquidation if BTC Price Returns to $70,000

A significant number of Bitcoin short positions are at risk of being wiped out if Bitcoin's price returns to $70,000, a level it has not reached in the past 12 days.

Bitcoin short positions amounting to a staggering $1.67 billion could be liquidated if the cryptocurrency manages to reclaim the $70,000 price level, which it last breached 12 days ago.

According to data from CoinGlass, this level of liquidations would occur if Bitcoin rises to $70,000.

Rising Liquidations and Market Sentiment

Bitcoin is currently trading at $66,251 after remaining below the $70,000 level since June 8. A further rise of 7.46% from its current price would take BTC to the $70,000 mark.

Over the past week, Bitcoin has dropped by 3.23%, adding to the anxiety of short sellers.

Pseudonymous crypto trader Ash Crypto highlighted this tension in a recent post, pointing out the potential for a large amount of short liquidations.

Meanwhile, market sentiment appears to be bullish despite the recent price decline. Joshua Jake, the CEO of Discover Crypto, highlighted this bullish outlook in a recent post.

According to Jake, both Bitcoin and Ethereum are accumulating liquidations, which could indicate an impending bounce in prices.

Open Interest Trends and Implications

Bitcoin’s open interest (OI) — the total value of all outstanding or unsettled Bitcoin futures contracts — has seen significant fluctuations.

Since reaching an all-time high on June 7, Bitcoin’s OI has decreased by 10.99%, currently standing at $33.55 billion. However, it is still 82% higher than on January 1.

The rising and falling levels of open interest can indicate different market trends. A decrease in open interest may suggest a weakening trend, while an increase indicates growing market interest.

Earlier in June, Bitcoin’s OI surged by over $2 billion in just three days, leading traders to anticipate a potential "whipsaw" effect on its price.

The Path to New All-Time Highs

Prominent crypto analyst Willy Woo has suggested that a significant liquidation event may be needed for Bitcoin to reach new all-time highs.

Woo, the creator of on-chain data resource Woobull, believes that a substantial number of liquidations are required before Bitcoin can continue its bullish momentum.

On June 19, Woo wrote, “We need a solid amount of liquidations still before we get the all clear for further bullish activity.” He went on to explain that enduring more "pain and boredom" is necessary before Bitcoin can break its all-time highs.

Woo's analysis aligns with that of other analysts who have described Bitcoin’s recent price action as "boring" following the Bitcoin halving on April 20.

Julien Bittel, head of research at Global Macro Investor, also expressed this view, describing the current phase as “The Boring Zone” before Bitcoin enters what he calls “The Banana Zone,” suggesting that this period of stagnation is a precursor to more significant price movements.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-short-positions-worth-b-liquidation-btc-price-returns.html

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