Key Points
- Bitcoin (BTC) continues to trade in a narrow range, indicating investor and trader disinterest.
- Bitcoin short sellers are anticipating significant liquidations if the Bitcoin price approaches $70,000.
Bitcoin, the world’s largest cryptocurrency, is currently experiencing a period of stagnation, with its price remaining consistent between $65,000 and $66,000. This has led to a noticeable lack of interest from both investors and traders.
Bitcoin Trader Fatigue
Data from on-chain analytics provider Santiment reveals a significant level of fear and disinterest among traders as Bitcoin’s price continues to fluctuate within this narrow range. This extended period of fear, uncertainty, and doubt (FUD) is unusual and indicates a continued capitulation among traders.
Santiment also highlights that this trader fatigue, along with ongoing whale accumulation, usually precedes price rebounds that benefit patient investors.
Short Sellers in Panic
Conversely, Bitcoin short sellers are feeling the pressure, hoping that the Bitcoin price doesn’t surpass $70,000 in the near future. If this occurs, it could trigger a substantial amount of liquidation.
Data from CoinGlass indicates that over $1.67 billion in short positions could be liquidated if the Bitcoin price nears $70,000. The last time Bitcoin was trading at these levels was on June 8.
Crypto trader Ash Crypto noted in a post on X that an “insane amount of Bitcoin short liquidations” are accumulating at the topside. Joshua Jake, CEO of Discover Crypto, agreed with this sentiment, stating that “markets are incredibly bullish right now. Bitcoin and ETH liquidations are stacked. Bounce imminent.”
Bitcoin Open Interest (OI) reached a record high of $33.35 billion earlier this month on June 7. However, it has since fallen by 7.99% due to Bitcoin’s sideways consolidation. Despite this, the Bitcoin Open Interest is still 82% higher than it was on January 1.
Liquidations Essential for New Highs
Despite the current price consolidation, Bitcoin analyst Willy Woo believes that there is still a lot of froth in the market. Therefore, Bitcoin liquidations would be necessary for the BTC price to resume its journey to new all-time high levels.
“We need a solid amount of liquidations still before we get the all clear for further bullish activity. I know it sucks, but BTC is not going to break all time highs until more pain and boredom plays out”, wrote Woo in his post on X, on Wednesday, June 19.
