‘Crazy’ Bitcoin shorts hope it doesn’t reach $70k
Bitcoin (BTC) short sellers are crossing their fingers that the asset may not return to $70,000 in the near future, risking massive liquidity if it does.
According to CoinGlass data, a staggering $1.67 billion in short positions will be contested if Bitcoin returns to $70,000 – the price level it has been trading at since June 8, according to CoinGlass data.
“Bitcoin's short liquidity is crazy,” said anonymous crypto trader Ash Crypto on June 17 in XPost.
According to CoinMarketCap, a 7.46% increase from the current price of $65,136 will bring it to $70,000.
“Markets are incredibly aggressive right now. Bitcoin and ETH liquidity is stacked. Coming soon,” Discover Crypto CEO Joshua Jake wrote on June 18.
Bitcoin Open Interest (OI) – The total value of all outstanding or unstable Bitcoin futures contracts fell on June 7, now sitting at $33.55 billion, down 10.99%.
However, Bitcoin OI is up 82% since the beginning of January 1st.
A fall in open demand can indicate a downtrend, while an increase in open demand can increase market demand.
Earlier this month through June 7, Bitcoin's OI increased by more than $2 billion in three days.
Liquidity needed before the new ATH for Bitcoin
Crypto analyst and creator of onchain data source Wobubble, Willie Woo, suggests that the major liquidity purge will push Bitcoin to new all-time highs.
Willie Woo wrote on June 19, “We need solid liquidity before we get the all clear for further bullish activity.”
Related: ‘Buy Dip?' Bitcoin price has dropped to a new 1-month low of $64k
“I know it's hated, but BTC won't break all the time unless you play a lot of pain and boredom,” he added.
Willie Woo isn't the only analyst to use the word “boring” to describe Bitcoin's recent price action following its April 20 halving.
“It's basically the boring zone before the banana zone,” wrote Julien Bittel, head of research at Global Macro Investor (GMI) on June 19.
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This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
