Bitcoin May Target $71,500 After Surpassing $65,000, Open Interest Spikes

Bitcoin (BTC) could hit the $71,500 mark after crossing the $65,000 threshold on Tuesday, according to some crypto traders. This recent price rebound has also intensified interest among futures traders who are betting on Bitcoin’s short-term movements. Bitcoin is currently trading at $65,778, according to CoinMarketCap data.

Pseudonymous trader Rekt Capital highlighted the significance of Bitcoin breaking past $65,000 in a July 16 post on X, noting that such a move positions the price to potentially climb into the $65,000-$71,500 range. Rekt Capital referred to a Bitcoin price cluster chart that segments price ranges into distinct boxes, illustrating previous instances this year when Bitcoin approached the $71,500 level after breaching $65,000.

However, not all traders are optimistic. A substantial number of short positions are at risk of liquidation if Bitcoin surges to $66,500. CoinGlass data reveals that approximately $450 million in short positions could be wiped out at $66,500.

The recent surge in Bitcoin on July 14, due to the failed assassination attempt on Republican candidate and former US President Donald Trump, saw $160 million in short positions liquidated, as bears were caught offside. BTC gained 12.56% in the past 7 days, as the odds of Trump being elected as the next US President surged to all-time highs, boosting investors’ optimism for the crypto industry.

Traders are currently more skewed to long positions, with a total of $2.28 billion in leveraged long positions at risk of liquidations should BTC prices head back to the $62,200 level. Despite this, the past five days have seen a resurgence in confidence among futures traders, with Open Interest (OI), the total number of outstanding Bitcoin options contracts, rising by 13%. Currently, Bitcoin’s Open Interest stands at $34 billion, according to CoinGlass.