Why Are Resellers Not Wanting BTC to Climb $70K?
There’s a chill running down the spines of many Bitcoin short sellers. A massive $1.67 billion worth of their bets would go bust if the leading cryptocurrency breaches the $70,000 resistance level it hasn’t seen since June 8th.
Short Squeeze Fears Grip the Market
Data from CoinGlass paints a clear picture: Bitcoin short positions are piling up near $70,000, creating a potential domino effect of forced buying (liquidations) if the price breaks through that barrier. Popular crypto trader Ash Crypto aptly described the situation as an “insane amount” of short liquidations waiting to happen.
Bullish Sentiment on the Rise
Despite the short-sellers’ woes, the overall market sentiment leans bullish. Analysts like Joshua Jake, CEO of Discover Crypto, point to the significant amount of stacked liquidations as a sign of an imminent price bounce. This aligns with the recent decline in Bitcoin’s open interest (OI) — a metric reflecting the total value of outstanding futures contracts. While a falling OI can indicate a weakening trend, it’s important to note that Bitcoin’s OI remains 82% higher compared to the beginning of the year.
Clearing the Decks for New Highs?
Some analysts, like Willy Woo, believe a significant short squeeze could pave the way for Bitcoin to conquer new all-time highs. He suggests that “a solid amount of liquidations” is necessary to remove resistance and fuel a new leg up. Woo isn’t alone in his assessment. Others, like Julien Bittel of Global Macro Investor, have used the term “boring” to describe Bitcoin’s recent price action, hinting at a potential build-up before a breakout.
Will the Bulls Charge or Will the Bears Hold Firm?
The coming days will be crucial for Bitcoin. Will the bulls overpower the short sellers and push the price above $70,000, triggering a cascade of liquidations? Or will the bears maintain their grip and keep the price suppressed? Only time will tell, but one thing’s for sure — the tension is palpable in the cryptocurrency market.
