$500 Million In Bitcoin Shorts Pile In As BTC Price Sits Below $20,000, Will They Get Squeeze?

Bitcoin has experienced a trading session with low volatility as the cryptocurrency moves in a tight range. The cryptocurrency is flirting with a critical support zone at around $19,500 which has been able to hold despite last week’s spike in selling pressure. Related Reading: Old Bitcoin Supply Moves Into Derivatives, Whales Setting Up Long Positions? At the time of writing, the price of Bitcoin (BTC) trades at $19,700 with sideways movement during the last 24 hours and the past week. As the price of Bitcoin stalls, crypto investors seem to be shifting their attention to other cryptocurrencies or waiting to see if these levels will hold. Some traders are more daring, expecting Bitcoin to re-test critical support at its multi-year low of around $18,000. As a consequence, the BTC/USDT trading pair saw an uptick in the amount of Open Interest (OI). As a pseudonym trader noted, the increase in Open Interest for the past week totals almost half a billion dollars or 24,000 BTC. These short positions have been “aggressively” piling in as BTC’s price sits on a massive wall of bid orders. There are over $50 million in buy orders sitting immediately below BTC’s price current levels. The price of the number one cryptocurrency has also been bouncing back from $19,500 over the past month’s downside price action. Therefore, the odds seem to be stacked against this $500 million in short positions, and as Bitcoin consolidates, with liquidity...