A hefty amount of Bitcoin short positions will be wiped if Bitcoin returns to $70,000, a price level it hasn’t seen in 12 days.
Bitcoin short sellers face potential liquidations totalling $1.67 billion if the cryptocurrency’s price hits $70,000, according to CoinGlass data. Bitcoin has traded below this level since June 8 and currently sits at around $65,136. A 7.46% increase would trigger these liquidations.
“There is an insane amount of Bitcoin short liquidations piling up at the topside,” noted crypto trader Ash Crypto. Markets remain bullish, with Discover Crypto CEO Joshua Jake emphasizing the potential for a bounce due to stacked liquidations.
Bitcoin’s open interest (OI), the total value of all unsettled futures contracts, has dropped 10.99% since its June 7 peak, though it remains 82% higher than on January 1. Rising OI generally indicates growing market interest, while falling OI can signal a weakening trend.
Crypto analyst Willy Woo suggests that a significant liquidation wipeout is necessary for Bitcoin to reach new all-time highs. “We need a solid amount of liquidations still before we get the all-clear for further bullish activity,” Woo stated.
Bitcoin’s price action has been described as “boring” since the April 20 halving, with analysts expecting more volatility before new highs are achieved.
