Bitcoin Eyes New August Lows as Binance Longs Face a ‘Cleanout’

Bitcoin (BTC) long positions are “facing liquidation” as volatility shows signs that a range breakout is finally coming.Key points:Bitcoin long positions face multiple threats as BTC price action heads toward new August lows, analyst warns.The correlation between Binance open interest and price reached 0.25 on Thursday as both fell.The Bitcoin bull market is not ready to make a comeback, CryptoQuant CEO Ki Young Ju says.Bitcoin longs feel the squeeze as price dropsInsights published on onchain analytics platform CryptoQuant by community analyst “BorisD” on Thursday suggest that leveraged long BTC positions are being flushed out as BTC/USD targets month-to-date lows.BTC/USD one-hour chart. Source: Cointelegraph/TradingViewThe analysis focuses on the relationship between price and open interest (OI) on Binance. OI represents total active derivative positions, both long and short, and reflects capital commitment in a given market. While price has traded in a narrow range since June, CryptoQuant data show that Binance OI has gradually increased, reaching $8.15 billion on Wednesday as futures increasingly steer the market while spot traders sit on the sidelines. Bitcoin open interest on...