The cryptocurrency market is experiencing a pullback on December 26, with Bitcoin (BTC) triggering the decline. This fix, Mt. It comes amid rumors that Gox has finally paid its 10-year-old creditors from the 2014 stock market crash. As the downtrend intensifies, Bitcoin short sellers are being rewarded monetarily with meaningful profits. Therefore, it is possible for other speculators to increase their short positions, further triggering short-term liquidations. In this context, crypto analyst Vinicius Barbosa draws attention to two cryptocurrencies with high “short squeeze” potential.
There is “short squeeze” potential for leading cryptocurrency Bitcoin
Notably, Bitcoin has highly bullish liquidations on the weekly time frame. The $44,640 price in particular is likely to quickly become a target for market makers, with $894.76 million worth of liquidation.
Additionally, there is $8 billion worth of liquidations from $44,000 to $45,000. This attractive volatile capital could trigger a series of ‘short squeezes’ on the leading cryptocurrency in January 2024. Meanwhile, traders opened short positions worth $17.93 billion in the last 24 hours alone. cryptokoin.comAs you follow from , Bitcoin is trading at $42,365, down 3% on the day.
In second place is the leading altcoin Ethereum (ETH)
The second-largest cryptocurrency also faces the threat of seeing a ‘short squeeze’ if bearish traders continue to deploy capital. Traders opened $9.17 billion in short positions on Ethereum (ETH) in the last 24 hours. Thus, ETH accounted for 52.31% of daily open positions.
However, the weekly liquidation heat map for ETH remains more stable than Bitcoin’s. It is possible to detect a liquidation of $26.76 million at $2,310 per token and a corresponding weight of up to $2,400.
On the other hand, downward liquidation for Ethereum long positions gives a contrarian and neutral outlook. Market makers may look either way, liquidating the bulls or bears in the coming weeks. Meanwhile, there is no guarantee that a ‘short squeeze’ will occur in these cryptocurrencies. That’s why it’s important for investors to do their own research before investing. Essentially, a ‘short squeeze’ is all about market sentiment turning from bearish to bullish while there are still open positions in the previous direction.
The opinions and predictions in the article belong to the analyst and are definitely not investment advice. We strongly recommend that you do your own research before investing.
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