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

Bitcoin Could Target $71,500 After Passing $65,000, Open Interest Rises

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

Pseudonymous trader Rekt Capital highlighted the importance of Bitcoin breaking through $65,000 in a July 16 post on X, noting that such a move would potentially see the price climb to the $65,000-$71,500 range. Rekt Capital cited a Bitcoin price cluster chart that divides price ranges into different boxes, showing previous instances where Bitcoin has approached the $71,500 level after exceeding $65,000 this year.

However, not all investors are optimistic. If Bitcoin rises to $66,500, a significant number of short positions are at risk of liquidation. CoinGlass data suggests that around $450 million worth of 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, resulted in the liquidation of $160 million worth of short positions as bears were caught offside. BTC has gained 12.56% in the last 7 days as Trump’s chances of being elected as the next US President rose to all-time highs, increasing investors’ optimism for the crypto industry.

Traders are currently more inclined towards long positions, with a total of $2.28 billion in leveraged long positions at risk of liquidation if BTC prices return to $62,200. Despite this, the past five days have seen a resurgence of confidence among futures traders, with Open Interest (OI), the total number of Bitcoin options contracts, up 13%. Bitcoin’s Open Interest currently stands at $34 billion, according to CoinGlass.