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
$65,781
was hovering just shy of $65,000.
Rekt referred to their Bitcoin price cluster chart, which divides price ranges into separate boxes, to show previous times when Bitcoin broke the $65,000 barrier before approaching the $71,500 level, which has already happened four times this year.
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Bitcoin is currently trading at $65,846 at the time of publication, according to CoinMarketCap data.
If Bitcoin moves to $71,500, the next significant stage will be Bitcoin’s all-time high of $73,649, reached on March 13.
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.
Related: Bitcoin price rally to $65K fueled by ‘complete exhaustion’ from sellers — Glassnode
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.”
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