Bitcoin traders are going in heavy on shorting BTC, expecting it to not cross $70,000 in the short-term. If it does, $1.6 billion in short contracts will be wiped out. The last time BTC hit that price was on June 8, after which it dropped to below $70,000 and went down even further to under $65,000.
Despite that, the market looks incredibly bullish for BTC. BTC Open Interest (OI) stands 82% higher than it did during the start of the year. OI refers to the outstanding futures contracts yet to be liquidated – the higher the OI the greater the belief in an asset rising in price often associated with bullish periods.
BTC OI has dropped by about 10.99% in the past two weeks. However, that does not justify expectations of the king of cryptos from plummeting in value, as some would believe. Rather, the price drops BTC witnesses are caused by macroeconomic factors that pose resistance until the needed catalyst pushes the price back up eventually.
Present corrections leading to tremendous futures liquidations may be needed to take BTC back to roaring highs. “We need a solid amount of liquidations still before we get the all clear for further bullish activity,” posted famous Bitcoin analyst, Willy Woo, on X. He continued, “I know it sucks, but BTC is not going to break all time highs until more pain and boredom plays out. Woo also presented a case for why BTC price reversal will occur, “On the bright side, miners are capitulating and when that is through, it nearly always ends in a huge rally.”
Nevertheless, traders expected the price reductions when BTC OI surged by a whopping $2 billion in a three-day window as its OI peaked on June 7. While evidence points to the asset making a comeback, it depends on how soon, and if soon enough, to liquidate $1.6 billion worth of shorts.
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