Bitcoin eyes new August lows as Binance longs face ‘cleanout’

Bitcoin futures open interest on Binance fell alongside the price of BTC, according to analysis published on CryptoQuant. The article claims that leveraged long positions are facing liquidation as volatility suggests a range breakout is imminent. The analysis focuses on the correlation between price and open interest (OI) on Binance. While price has remained in a narrow range since June, Binance's OI has gradually increased, reaching $8.15 billion by Wednesday.

As the price sees downside volatility on lower time frames, the correlation between price and OI has become unstable, potentially squeezing long positions that have accumulated in the low $60,000 zone. The analyst states that the "anticipated cleanout has begun" due to a correlation reading of 0.25, reflecting declining long positions as price continues to fall. CoinGlass data shows that total 24-hour cross-crypto liquidations amounted to $236 million at the time of writing.

CryptoQuant CEO Ki Young Ju stated that conditions for a renewed Bitcoin bull market have yet to emerge, as composite onchain indicators remain in "bear" territory. The article also references other onchain analytics platforms, such as Glassnode, which currently indicate a prolonged "capitulation" phase in BTC's price cycle.