Bitcoin Longs Face Squeeze as Price Targets New Lows
Bitcoin's price action is showing signs of a range breakout, but it's not all good news for long positions. According to an analysis by CryptoQuant, leveraged long Bitcoin positions are being flushed out as the price targets month-to-date lows.
The correlation between the price and open interest (OI) on Binance has entered a state of flux, potentially squeezing long positions that have built up in the low $60,000 zone. OI represents total active derivative positions, both long and short, and reflects capital commitment in a given market.
CryptoQuant data show that Binance OI has gradually increased to $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.