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Bitcoin Short Sellers Could Lose $1.67B

By Anthony Burr | TH3FUS3 Managing Editor

June 20, 2024 11:02 AM

Reading time: 2 minutes, 3 seconds

TL;DR Bitcoin short sellers are on edge as the asset nears the $70,000 mark. CoinGlass data shows a potential $1.67 billion in liquidations. Market analysts weigh in on the bullish sentiment and possible outcomes.

Bitcoin Short Sellers on Edge

Bitcoin (BTC) short sellers are at risk because the number one cryptocurrency could soon return to $70,000. If it does, a vast number of liquidations are at risk.

CoinGlass data shows that a staggering $1.67 billion of short positions will be liquidated if Bitcoin returns to $70,000. According to CoinGlass data, Bitcoin has been trading under this price level since June 8.

"There is an insane amount of Bitcoin short liquidations piling up at the topside," pseudonymous crypto trader Ash Crypto acknowledged on June 17 in an X post. According to CoinMarketCap, a 7.46% increase from its current price of $65,136 would bring it to $70,000.

Bullish Market Sentiment

"Markets are incredibly bullish right now. Bitcoin and ETH Liquidations are stacked. Bounce imminent," Discover Crypto CEO Joshua Jake wrote on June 18.

Bitcoin Open Interest (OI)—the total value of all outstanding or unsettled Bitcoin futures contracts across exchanges—has dropped 10.99% since reaching its all-time high on June 7, now sitting at $33.55 billion. However, Bitcoin OI is 82% higher compared to the start of this year, on January 1.

While falling open interest can point to a deteriorating trend, rising open interest implies growing market interest. Earlier this month, in the lead-up to June 7, Bitcoin's OI surged over $2 billion in just three days, leading traders to believe it may trigger a sudden "whipsaw" effect on its price.

Liquidations Needed Before New ATH

Crypto analyst and creator of onchain data resource Woobull, Willy Woo, suggests a significant liquidation wipeout will better position Bitcoin to reach new all-time highs. "We still need a solid amount of liquidation before we get the all-clear for further bullish activity," Willy Woo wrote on June 19.

"BTC is not going to break all-time highs until more pain and boredom plays out," he added.

Willy Woo is not the only analyst who has used the word "boring" to describe Bitcoin's recent price action following the Bitcoin halving on April 20. "It's The Boring Zone before The Banana Zone," Global Macro Investor (GMI) head of research Julien Bittel wrote on June 19.

Related Market Movements

Magazine: Dynamo DeFi observed in an X Hall of Flame post that Ethereum's recent pullback could be a gift. Analysts are closely watching the market's next moves, especially as Bitcoin hovers near critical price points.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their research when making a decision.

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