Bitcoin shorts above $70K at risk since ‘90% of downside’ is already complete
Bitcoin price data suggests BTC remains undervalued and that short positions opened above $70,000 face a high risk of liquidation.
Bitcoin (BTC) futures data shows that traders who opened new short positions above $70,000 over the weekend could be at risk of liquidation as a wave of leveraged positions were closed on Monday.
The weekly change in Bitcoin futures market open interest fell to -2.46% on Monday, down from a 8.9% increase on March 31, suggesting a decline in leverage.
Multiple long-term Bitcoin valuation metrics also sit at historic lows, with analysts estimating that nearly 90% of the downside has already been priced in.