Bitcoin Longs Face Liquidation Pressure as Price Nears August Lows

Bitcoin futures open interest on Binance has dropped alongside price, signaling that leveraged long positions are being flushed out. Analysts note the correlation between open interest and price fell to 0.25, a sign that longs are getting stopped out or liquidated as BTC heads toward fresh monthly lows.

Open Interest Trends Point to Squeeze

Open interest had climbed steadily since June even as price stayed range-bound, building up long positions in the low $60,000 area. That setup created a double sided squeeze, with dip buyers and new short sellers both active. Total crypto liquidations reached $236 million over 24 hours.

Bull Market Signals Still Missing

Onchain data continues to show bearish conditions, with several composite indicators pointing to an extended capitulation phase not seen since 2022, suggesting a recovery isn’t imminent.