Bitcoin Analyst Sees Liquidation Exhaustion and Fading Open Interest as BTC Price Rebounds to $106K
The post Bitcoin Analyst Sees Liquidation Exhaustion and Fading Open Interest as BTC Price Rebounds to $106K appeared on BitcoinEthereumNews.com.
Key takeaways: Bitcoin price trades 6% below all-time highs, but several market signals suggest more upside ahead. Bitcoin is poised for a breakout to all-time highs if a key resistance level at $108,000 is broken. Bitcoin (BTC) price has rebounded 10% since June 5, reaching near-all-time highs at $110,800 on June 9. Meanwhile, analysts say declining open interest and “liquidation exhaustion” suggest that BTC price is primed for the next move. Is OI divergence bullish for Bitcoin price? Onchain data reveals a notable divergence between Bitcoin’s price and Binance open interest (OI), showing progressive deleveraging across the derivatives market. While Bitcoin price came within 1.3% of its all-time high on May 27, Binance OI failed to reach its previous peak in late May, according to data from CryptoQuant. Instead, a distinct divergence has emerged with this metric recording a series of lower lows, as shown in the chart below. Bitcoin price and Binance OI 24-hour change. Source: CryptoQuant Similarly, the Binance Liquidation Delta chart highlights a sharp liquidation cluster around $104,000, where long positions were forcefully closed when the price dipped below this level on June 13. Related: Bitcoiners split on $94K or $114K for BTC’s next move as it trades sideways The market correction, triggered by Israel’s attack on Iran, saw over $453 billion in long Bitcoin liquidated against $59.8 million short positions. Bitcoin: Binance liquidation data. Source: CryptoQuant According to CryptoQuant analyst Amr Taha, this reflects “cleansing of latecomers chasing the rally,” which coincides with the Fed’s decision to leave interest rates unchanged. “This macroeconomic signal often acts as a tailwind for risk-on assets like Bitcoin,” Amr Taha said in a June 19 QuickTake, adding: ‘Historically, BTC has shown bullish tendencies following rate stabilization, especially when paired with signs of liquidation exhaustion and fading open interest.” Another significant…
Filed under: News - @ June 21, 2025 4:21 am