Bitcoin: Short Sellers are Betting it Will Stay Below $70,000

Bitcoin is once again at the center of the news. Short sellers, those traders betting on falling prices, are holding their breath hoping that Bitcoin will not reach the fateful threshold of $70,000.

A risky game

Bitcoin elicits extreme reactions. On one side, optimists hope for skyrocketing increases, while on the other, short sellers are betting on fatal drops.

Currently, they fear a rise in Bitcoin to $70,000, which would trigger a massive liquidation of short positions, estimated at around $1.67 billion, according to data from CoinGlass.

This $70,000 threshold, which Bitcoin hasn’t reached since June 8th, has become a real minefield for short sellers.

An increase of only 7.46% from its current price of $65,136 would be enough to trigger this financial catastrophe. As highlighted by Joshua Jake, CEO of Discover Crypto, “The markets are incredibly bullish at the moment. Bitcoin and ETH liquidations are stacked. Imminent rebound.”

Bitcoin’s volatility is a double-edged sword. For short sellers, each rise is another step towards financial precipice. Ash Crypto, a well-known pseudonymous trader, even described the situation as “a crazy amount of short liquidations” accumulating on the rise.

Open interest: a crucial barometer for bitcoin prices

Bitcoin’s open interest (OI), which represents the total value of all ongoing futures contracts, is a crucial indicator for understanding market dynamics.

Since its historic peak of $33.55 billion on June 7th, open interest has dropped by 10.99%. This decline could indicate a trend toward deterioration, but it is essential to note that open interest has increased by 82% since January 1st.

This volatility in open interest reflects the conflicting sentiments of traders. While part of the market anticipates a decrease, others see this situation as an opportunity for future growth.

Fluctuations in open interest also show the market’s nervousness. As of June 7th, ongoing interest in Bitcoin exceeded $2 billion in just three days, sparking speculation about a potential whiplash effect on Bitcoin’s price. This nervousness is clearly evident, and each price movement attracts almost obsessive attention. Short sellers hope that bitcoin will stay below $70,000, but in this unpredictable universe, nothing is ever certain.