With more than $1.67 billion of short positions on Bitcoin, traders are fearful of the BTC price hitting $70,000 in the near term which could lead to massive liquidations.
The world’s largest cryptocurrency Bitcoin (BTC price data) continues to trade in a very tight range between $65,000-$66,000 without any major impetus for a directional move. Also, the on-chain indicators for Bitcoin show a growing disinterest among investors and traders.
On-chain data provider Santiment reports that Bitcoin is currently experiencing significant fear and disinterest among traders as its price fluctuates between $65,000 and $66,000. This prolonged period of fear, uncertainty, and doubt (FUD) is uncommon and reflects a continued capitulation among traders.
Santiment notes that this trader fatigue, coupled with ongoing whale accumulation, typically precedes price rebounds that benefit patient investors.
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Photo: Santiment
- Bitcoin Short Sellers in Panic
On the other hand, the Bitcoin short sellers are panicking with the hope that the Bitcoin price doesn’t cross $70,000 in the near term. If at all this happens, it will lead to a huge amount of liquidation.
As per the data from CoinGlass, more than $1.67 billion in short positions will be liquidated if the Bitcoin price nears $70,000. The last time the Bitcoin price was trading at these levels was on June 8.
On June 17, pseudonymous crypto trader Ash Crypto noted in a post on X that there is “an insane amount of Bitcoin short liquidations piling up at the topside.” The following day, Discover Crypto CEO Joshua Jake echoed this sentiment, stating that “markets are incredibly bullish right now. Bitcoin and ETH liquidations are stacked. Bounce imminent.”
The Bitcoin Open Interest (OI) touched an all-time high of $33.35 billion earlier this month on June 7. However, it has now dropped 7.99% since then amid the sideways consolidation for Bitcoin. But in comparison to January 1, the Bitcoin Open Interest is higher by 82%.
BTC Liquidations Essential Before Hitting New All-Time High
Despite the current price consolidation, popular Bitcoin analyst Willy Woo stated that there’s still a lot of froth in the market. Thus, Bitcoin liquidations would be essential if the BTC price has to resume its journey to hitting new all-time high levels.
“We need a solid amount of liquidations still before we get the all clear for further bullish activity. I know it sucks, but BTC is not going to break all time highs until more pain and boredom plays out”, wrote Woo in his post on X, on Wednesday, June 19.
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