The world of Bitcoin seems to be teetering on the side of tension, with a significant number of Bitcoin short sellers anxiously hoping the digital currency’s value won’t climb back up to $70,000. An ominous looking $1.67 billion of short positions could be liquidated if this level is reached – a level not seen since the 8th of June, according to CoinGlass.
Renowned crypto trader Ash Crypto took to Twitter recently to expose the magnitude of the looming liquidations: “There is an insane amount of Bitcoin short liquidations piling up at the top”. Meanwhile, the CEO of Discover Crypto alluded to a possible increase in the market, announcing, “Markets are incredibly bullish right now. Bitcoin and ETH Liquidations are stacked. Bounce imminent.”
While all this is going on, there’s been a certain chill in the Bitcoin atmosphere. In recent days there’s been a drop in Bitcoin’s open interest (the total value of unsettled Bitcoin futures contracts) by more or less 11% since hitting an all-time high on June 7th. However, even with this drop, it’s still a whopping 82% higher compared to the start of the year, indicating this market is still red hot.
High-profile crypto analyst and Woobull founder Willy Woo recently suggested a major liquidation wipeout might actually pave the way for Bitcoin to achieve new record highs. “We need a solid amount of liquidations still before we get the all clear for further bullish activity,” he tweeted.
Despite the tense dynamics shaping the market, there might still be excitement ahead. Julien Bittel, an expert at the Global Macro Investor declared, “Basically, it’s The Boring Zone before The Banana Zone.” This quirky phrase expresses the sentiment that, despite the current lull in the market, wild and potentially profitable fluctuations may still be on the horizon.