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Since a large number of liquidations might be set off should the asset not recover to $70,000 anytime soon, Bitcoin short sellers are probably hoping this would not happen. Data from CoinGlass shows that should Bitcoin hit the $70,000 mark—a price level it has been trading beneath since June 8—$1.67 billion in short positions run the danger of being liquidated.
Said pseudonymous crypto trader Ash Crypto in a June 17 post on X, “There is an insane amount of Bitcoin short liquidations piling up at the topside.”
Market Sentiment and Analyst Predictions
A 7.46% rise from its present price of $65,136 would drive Bitcoin above $70,000, claims CoinMarketCap. With Discover Crypto CEO Joshua Jake remarking on June 18, “Markets are incredibly bullish right now” the present market attitude is rather positive. Liquidations of Bitcoin and ETH stack one other. Bounce quick.
Originally hitting its all-time high on June 7, Bitcoin Open Interest (OI), the total value of all active or unsettled Bitcoin futures contracts across exchanges, has decreased 10.99% since then and currently stands at $33.55 billion. Notwithstanding this drop, Bitcoin OI is still 82% greater than it was on January 1, this year. Rising OI points to increasing market interest; dropping OI might point to a declining trend.
In only three days earlier this month, in preparation for June 7, Bitcoin’s OI shot over $2 billion. This quick rise made traders think it would have an unexpected “wipesaw” impact on pricing.
According to onchain data resource Woobull, a crypto analyst and developer, Bitcoin needs a major liquidation event if it is to achieve fresh all-time highs. “We need a good volume of liquidations still before we get the all clear for further bullish activity,” Woo said on June 19. “I know it sucks, but until more suffering and boredom plays out BTC is not going to break all time highs.”
Not only is Woo not the only expert characterizing the current price behavior of Bitcoin as dull. After the Bitcoin halved on April 20, the market has been very quiet. “Basically, it’s The Boring Zone before The Banana Zone,” said Global Macro Investor (GMI) director of research Julien Bittel on June 19.
With Bitcoin hovering around $65,000, market players are anxiously monitoring for indications of a breakout or further consolidation. The possibility of large liquidations adds to the uncertainty, hence the next days are very important for the price movement of Bitcoin.
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