The cryptocurrency market is showing a slight uptrend after a brief pullback. Under this observed volatility and sentiment change, there are imbalances in the derivatives of some cryptocurrencies. According to crypto expert Vinicius Barbosa, these imbalances often lead to large-scale liquidations. This emerges as ‘short squeeze’ for overly shorted assets. In this context, the expert draws attention to 2 altcoin projects with a high probability of ‘short squeeze’.
Data warns these 2 altcoins are ‘short squeeze’!
cryptokoin.comAs you follow from, Bitcoin (BTC) is retesting the $43,000 price zone. The leading cryptocurrency lost this level on December 11. It was then rejected last week between December 13th and 15th. Now, crypto investors are eagerly awaiting a breakout or a bounce back.
Most cryptocurrencies are following Bitcoin’s short-term uptrend. Two of its direct competitors show a larger volume of short positions opened against long open interest in the last 12 and 24 hours. Litecoin (LTC) and Bitcoin Cash (BCH) in particular have a higher weighting of short sellers in these time frames. CoinGlass data gave a ‘short squeeze’ warning for these 2 altcoins.
‘Short squeeze’ warning for Litecoin (LTC)
Litecoin, also known as “digital silver” rather than Bitcoin’s “digital gold,” is trading at $71.16 at the time of writing. LTC increased by approximately 3% on the day. However, it is heavily shorted compared to all other coins in the top 20. Essentially, $74.33 million (53.31%) and $154.11 million (52.40%) were shorted in the last 12 and 24 hours, respectively. On the other hand, long positions of $65.11 million and $140.01 million were opened in the same time periods.
Meanwhile, Litecoin ranks 18th with a market value of $5.26 billion. 24-hour exchange volume is also only $115 million higher for shorts. This increases the possibility of a ‘short squeeze’ for the altcoin soon.
Bitcoin Cash (BCH) shorts may explode!
Interestingly, Bitcoin’s most direct competitor was also being heavily shorted at the time of writing. Bitcoin Cash recorded a daily gain of around 1%. Additionally, the altcoin is trading at $228.33 with a short position of $103.98 million in the last 24 hours. Moreover, traders opened $52.46 million of these short positions in the last 12 hours. Both accounted for 51.83% and 52.87% of their respective open interest volumes.
Meanwhile, both altcoins have similar capitalization and exchange volume. Considering this situation, BCH has a lower probability of a ‘short squeeze’ than LTC. However, there is no guarantee that such an event will occur with these cryptocurrencies. Cryptocurrency investors must do their own research to make profitable financial decisions. In addition, it would be beneficial for them to take other data into consideration.
The opinions and predictions in the article belong to the expert and are definitely not investment advice. We recommend that you do your own research before investing.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!