Bitcoin: Short sellers bet it will stay below $70,000

Bitcoin is once again at the heart 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 provokes extreme reactions. On the one hand, optimists hope for dizzying increases, on the other, short sellers bet on fatal declines.

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

This threshold of $70,000, which Bitcoin has not reached since June 8, has become a real minefield for short sellers.

An increase of just 7.46% from its current price of $65,136 would be enough to trigger this financial cataclysm. As pointed out Joshua Jake, CEO of Discover Crypto, “ The markets are incredibly bullish right now. Bitcoin and ETH liquidations are stacked. Rebound imminent. »

Bitcoin volatility is a double-edged sword. For short sellers, each rise is a step closer to the financial precipice. Ash Crypto, a well-known pseudo-trader, called the situation “a crazy amount of short position liquidations” accumulating upwards.

Open interest: an essential barometer for the price of bitcoin

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

Since its all-time peak of $33.55 billion on June 7, open interest has fallen 10.99%. This drop could indicate a deteriorating trend, but it is essential to note that open interest has increased by 82% since January 1st.

This volatility in open interest reflects the conflicting feelings of traders. While part of the market expects a decline, others see this as an opportunity for future growth.

Fluctuations in open interest also show market nervousness. As June 7 approaches, Bitcoin's open interest surpassed $2 billion in just three days, sparking speculation about a possible bullwhip effect on the Bitcoin price. This nervousness is clearly evident, and every price movement attracts almost obsessive attention. Short sellers are hoping bitcoin stays below $70,000, but in this unpredictable world, nothing is ever certain.

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