Originally published on: July 30, 2024
Amidst sell-side pressure following the Wall Street open on July 30, Bitcoin’s price dipped below $66,000, resulting in a significant decline in leveraged long positions. As the cryptocurrency traded at $65,798, marking a 2.3% decrease over the past 24 hours, market observers noted the impact of failed attempts to surpass the $70,000 threshold, signaling a crucial battleground for bears.
Spot Selling Triggers BTC Futures Open Interest Shakeout
Analysis from Cointelegraph Markets Pro and TradingView highlighted the removal of approximately $800 million in Bitcoin futures open interest (OI) subsequent to the recent decline from $70,000. The market’s current dynamics suggest the need for a surge in leveraged long positions and spot buying volume to reclaim the weekly open set at $67,500. Notably, long BTC liquidations appear to be concentrated around the $69,000 mark, indicating a significant OI purge.
Spot Activity Critical for Market Direction
Traders such as Skew and Daan Crypto Trades emphasized the pivotal role of spot activity in determining Bitcoin’s price trajectory. As large buy orders continue to support the current price level, market participants anticipate heightened volatility in the near future amidst growing futures open interest. Long traders and spot buying behavior remain key focal points as the market navigates this period of uncertainty.
Potential Liquidations and Market Outlook
Data from CoinGlass forecasts potential long liquidations if Bitcoin retraces to $65,500, while short liquidations are seen mounting between $70,000 and $72,000. Notably, traders utilizing 10x leverage face liquidation risks in the range of $60,372 to $58,400, signaling a potential downwards move. However, it is imperative to remember that all trading decisions carry inherent risks, and individuals should conduct thorough research before executing any trades. Stay informed and attentive to market developments to make informed decisions.
