Historical Peak in Cryptocurrencies! Will Bitcoin Price Drop to $50,000?

Summary

Open interest in cryptocurrencies has reached the ATH level.
Bitcoin price surpassed $68,000 in the early hours of the night.
The possibility of a price correction for Bitcoin remains.
Similar to 2021, when ATH was seen, funding rates revealed an upward trend in open interest, while Bitcoin rose to an all-time high. On the other hand, interestingly, it is seen that a positive funding rate has emerged due to the gradual transformation of open positions into long positions.
However, this unstable structure created large liquidation zones in the lower region due to the liquidation prices of traders due to the opening of long positions. As such, BTC and most cryptocurrencies appear to be facing the threat of an imminent squeeze that could trigger a short-term decline.

Looking at CoinGlass' liquidation heatmap, this scenario can be supported by the zone at $50,000, which is calculated above $3 billion.

In summary, the all-time high open interest rate brings with it an increased inflow of capital in the crypto market, but it continues to come with risks and a high cost. This influx of long positions may have opened the door to imbalances that smart traders and market makers can take advantage of.