Bitcoin Longs Face Squeeze as Binance Open Interest Correlation Hits 0.25

Bitcoin ($BTC) long positions are facing multiple threats as $BTC price action heads towards new August lows, analyst warns.

The correlation between Binance open interest and price reached 0.25 on Thursday as both fell, potentially squeezing long positions that have built up in the low $60,000 zone.

CryptoQuant data show that Binance Open Interest (OI) has gradually increased, reaching $8.15 billion on Wednesday as futures increasingly steer the market while spot traders sit on the sidelines.

The latest correlation data showed a reading of 0.25, indicating declining long positions as price continues to fall, suggesting the 'anticipated cleanout' has begun.