Bitcoin's price has fallen below $71,000 for the first time in seven weeks, resulting in the liquidation of $276 million in leveraged bullish positions. This decline coincided with growing geopolitical tensions, particularly renewed military actions between the US and Iran, which have contributed to increased risk aversion among traders.
Despite the downward pressure on Bitcoin, significant bullish positioning has been observed in the derivatives market. At Binance, the long-to-short ratio among top traders rose to 1.4x, up from 1.1x the previous week, indicating a shift toward long positions. Meanwhile, at OKX, the long-to-short ratio increased to 1.9x after a brief period of short position accumulation.
The aggregate open interest for Bitcoin futures across major exchanges remained steady at $43.5 billion. Traders appear reluctant to close their positions despite the risk of forced liquidations, as the annualized funding rate for Bitcoin perpetual futures surged above the neutral range, signaling a potential increase in confidence among bullish investors.