$70K Bitcoin mark is bad news for multiple short sellers

$70K Bitcoin mark is bad news for multiple short sellers

A substantial number of Bitcoin short-sellers might find themselves in a precarious position as they face the risk of liquidation if Bitcoin approaches the $70,000 mark—a level not seen since June 8. Recent data from Coinglass
reveals that short positions totaling a staggering $1.67 billion could face liquidation should Bitcoin climb back to this price point.

Over the last week, Bitcoin has experienced a decline of 3.23%, as indicated by CoinMarketCap. Yet, there’s a mounting consensus among traders that a price rebound is on the horizon. Ash Crypto, a noted crypto trader, highlighted on social media the “insane amount” of potential short liquidations if Bitcoin reaches higher price levels. A mere 7.46% increase from its current price of $65,136 would propel Bitcoin to $70,000, intensifying the liquidation threat for short-sellers.

Furthermore, the open interest in Bitcoin, representing the total value of outstanding Bitcoin futures contracts, has decreased by 10.99% since hitting its peak on June 7, settling at $33.55 billion. This reflects a significant uptick of 82% in open interest since January 1, suggesting a heightened market engagement despite recent pullbacks.

Joshua Jake, CEO of Discover Crypto, also noted the bullish sentiments permeating the market, with liquidations for both Bitcoin and Ethereum hinting at an imminent market rally. This could signify a crucial juncture for Bitcoin, as previous surges in open interest have occasionally precipitated abrupt price movements, or “whipsaws,” impacting Bitcoin’s market value.

Prominent crypto analyst Willy Woo posits that a significant purge of liquidations might be necessary for Bitcoin to ascend to new all-time highs. Woo’s perspective is that the market might need to endure further “pain and boredom” before any substantial bullish trends emerge, a sentiment echoed by other analysts who find the current market phase lackluster yet poised for an eventful turn.

As the market braces for potential volatility, the anticipation of Bitcoin’s movement either towards or away from the $70,000 threshold remains a focal point for traders and analysts alike, underscoring the high-stakes environment of cryptocurrency trading.

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