Traders Have Opened $1.6 Billion in BTC Short Positions

Source Livebitcoinnews
Jun 20, 2024 21:30

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.

Photo by André François McKenzie on Unsplash

The post Traders Have Opened $1.6 Billion in BTC Short Positions appeared first on Live Bitcoin News.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Bitcoin CME gaps at $35,000, $27,000 and $21,000, which one gets filled first?Prioritize filling the $27,000 gap and even try higher.
Author  FXStreet
Prioritize filling the $27,000 gap and even try higher.
placeholder
Natural Gas sinks to pivotal level as China’s demand slumpsNatural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
Author  FXStreet
Natural Gas price (XNG/USD) edges lower and sinks to $2.56 on Monday, extending its losing streak for the fifth day in a row. The move comes on the back of China cutting its Liquified Natural Gas (LNG) imports after prices rose above $3.0 in June. It
placeholder
Bitcoin Hasn’t Reached Bull Cycle Top Yet, Quant Explains WhyAccording to the trend in an on-chain indicator, an analyst has explained how Bitcoin may still need to reach the top of the current bull cycle.
Author  NewsBTC
According to the trend in an on-chain indicator, an analyst has explained how Bitcoin may still need to reach the top of the current bull cycle.
placeholder
Spot Ethereum ETFs To Launch In 8 Days, Bloomberg Expert ConfirmsAfter months of anticipation, the launch of spot Ethereum ETFs in the United States appears to be imminent as the US Securities and Exchange Commission (SEC) has reportedly requested that Ethereum ETF issuers submit their final S-1 filings, including fee structures, by Wednesday, July 17.  Ethereum ETFs Hopefuls Gear Up For July 23 Debut Bloomberg […]
Author  Bitcoinist
After months of anticipation, the launch of spot Ethereum ETFs in the United States appears to be imminent as the US Securities and Exchange Commission (SEC) has reportedly requested that Ethereum ETF issuers submit their final S-1 filings, including fee structures, by Wednesday, July 17.  Ethereum ETFs Hopefuls Gear Up For July 23 Debut Bloomberg […]
goTop
quote