Traders eye $71.5K Bitcoin price as open interest jumps 13%

Bitcoin may be gearing up to move above $70,000 now it has reclaimed a critical level that traders have been closely watching for the past two months.

• Bitcoin could be headed toward the $71,500 mark after breaching the $65,000 price point on Tuesday, based on historical patterns as observed by crypto traders.
• The price rebound has also increased interest among future traders betting on Bitcoin’s near-term price movements.
• “Breaking $65,000 would mean price would be ready to move inside the $65,000-$71,500 region,” pseudonymous crypto trader Rekt Capital wrote in a July 16 X post, when Bitcoin (BTC) was hovering just shy of $65,000.

Bitcoin shorters think otherwise

However, a huge amount of short positions are at risk of being liquidated at $71,500, meaning many future traders are confident the price won’t reach that level for now.

• Approximately $1.47 billion in short positions will be wiped at $71,500, according to CoinGlass data.
• Despite this, the past five days has rebuilt confidence among future traders, as Open Interest (OI) — the total number of outstanding Bitcoin options contracts traders hold at a given time that have not yet been executed — has spiked 13% over the same period.

Meanwhile, pseudonymous crypto trader Mags pointed out that Bitcoin’s recent price decline to $56,649 on June 12, falling below the 200-day moving average — could be a signal that Bitcoin could repeat its historical patterns seen in August 2023, where Bitcoin jumped 17.5% to $47,000 in just two months.

“If a similar pattern repeats after the recent dip, we could see $70,000+ for Bitcoin soon” Mags stated in a July 16 X post.

Pseudonymous crypto trader Yoddha believes the sharp decline was a “fakeout to trap all the panic sellers.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.