Ethereum

Cryptocurrency

Bitcoin

<div class="finbold">
 <p class="paragraph">The cryptocurrency market is experimenting with a retracement on December 26, with Bitcoin (BTC) triggering the drop. This correction comes amid rumors of Mt. Gox finally paying its 10-year creditors from the exchange collapse in 2014.</p>
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 <p class="paragraph">As the bearish sentiment intensifies, Bitcoin short-sellers are monetarily rewarded with meaningful profits. Therefore, other speculators have increased their short positions, which can further trigger short-<a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> liquidations.</p>
 <p class="paragraph">In this context, Finbold retrieved derivatives data from <em>CoinGlass</em> to spot short-<a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> opportunities for January 2024. A short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> happens when short-sellers are forced out of their short positions amid a price surge, liquidating these traders and driving the price even higher.</p>
 <h2 class="wp-block-heading" id="h-short-squeeze-alert-for-bitcoin-btc-in-january-2024">Short squeeze alert for Bitcoin (BTC) in January 2024</h2>
 <p class="paragraph">Notably, Bitcoin has high-weighted liquidations to the upside in the weekly time frame. In particular, the $44,640 price can quickly become a target for market makers, with $894.76 million worth of liquidations.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="549" src="https://cdn.thebittimes.com/images/2023/12/26/cbab61838c376bbd58fc1ce7314d4991.webp" alt class="wp-image-145470" srcset="https://cdn.thebittimes.com/images/2023/12/26/cbab61838c376bbd58fc1ce7314d4991.webp 1024w, https://cdn.thebittimes.com/images/2023/12/26/cbab61838c376bbd58fc1ce7314d4991.webp 300w, https://cdn.thebittimes.com/images/2023/12/26/cbab61838c376bbd58fc1ce7314d4991.webp 768w, https://cdn.thebittimes.com/images/2023/12/26/cbab61838c376bbd58fc1ce7314d4991.webp 1536w, https://cdn.thebittimes.com/images/2023/12/26/cbab61838c376bbd58fc1ce7314d4991.webp 2040w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BTC weekly liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
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 <p class="paragraph">Additionally, there is more than $8 billion worth of liquidations, from $44,000 to $45,000. This attractive floating capital could trigger a series of short squeezes to the leading cryptocurrency in January 2024.</p>
 <p class="paragraph">In the meantime, $17.93 billion of short positions were opened in the last 24 hours alone. Bitcoin is currently trading at $42,365, down 3% in the day.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="109" src="https://cdn.thebittimes.com/images/2023/12/26/87101330c681b94a0e268b93a6f7aa99.webp" alt class="wp-image-145471" srcset="https://cdn.thebittimes.com/images/2023/12/26/87101330c681b94a0e268b93a6f7aa99.webp 1024w, https://cdn.thebittimes.com/images/2023/12/26/87101330c681b94a0e268b93a6f7aa99.webp 300w, https://cdn.thebittimes.com/images/2023/12/26/87101330c681b94a0e268b93a6f7aa99.webp 768w, https://cdn.thebittimes.com/images/2023/12/26/87101330c681b94a0e268b93a6f7aa99.webp 1536w, https://cdn.thebittimes.com/images/2023/12/26/87101330c681b94a0e268b93a6f7aa99.webp 1900w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Bitcoin long/short ratio. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="ethereum-eth">Ethereum (ETH)</h2>
 <p class="paragraph">The second-largest cryptocurrency also threatens to see a short squeeze if bearish traders continue to deploy capital. So far, Ethereum (ETH) has opened $9.17 billion of short positions in the last 24 hours, weighing 52.31% of the daily open interest.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="91" src="https://cdn.thebittimes.com/images/2023/12/26/59de02c19e8cca3615dc807dc8bea763.webp" alt class="wp-image-145472" srcset="https://cdn.thebittimes.com/images/2023/12/26/59de02c19e8cca3615dc807dc8bea763.webp 1024w, https://cdn.thebittimes.com/images/2023/12/26/59de02c19e8cca3615dc807dc8bea763.webp 300w, https://cdn.thebittimes.com/images/2023/12/26/59de02c19e8cca3615dc807dc8bea763.webp 768w, https://cdn.thebittimes.com/images/2023/12/26/59de02c19e8cca3615dc807dc8bea763.webp 1536w, https://cdn.thebittimes.com/images/2023/12/26/59de02c19e8cca3615dc807dc8bea763.webp 1884w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Ethereum long/short ratio. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Nevertheless, the weekly liquidations heatmap for ETH looks more balanced than Bitcoin’s. It is possible to spot $26.76 million of liquidations at $2,310 per token and a relevant weight until $2,400.</p>
 <figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="549" src="https://cdn.thebittimes.com/images/2023/12/26/bc83a214b3979dd7f77de43ca65a4256.webp" alt class="wp-image-145473" srcset="https://cdn.thebittimes.com/images/2023/12/26/bc83a214b3979dd7f77de43ca65a4256.webp 1024w, https://cdn.thebittimes.com/images/2023/12/26/bc83a214b3979dd7f77de43ca65a4256.webp 300w, https://cdn.thebittimes.com/images/2023/12/26/bc83a214b3979dd7f77de43ca65a4256.webp 768w, https://cdn.thebittimes.com/images/2023/12/26/bc83a214b3979dd7f77de43ca65a4256.webp 1536w, https://cdn.thebittimes.com/images/2023/12/26/bc83a214b3979dd7f77de43ca65a4256.webp 2040w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BTC weekly liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">On the other hand, the downward liquidation for Ethereum’s long positions offers a counterpoint and neutral outlook. Market makers could seek both directions, either liquidating bulls or bears in the following weeks.</p>
 <p class="paragraph">It is important to say that there are no guarantees that a short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> will happen with these <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies. Crypto investors must do their own research and consider other data to make profitable financial decisions.</p>
 <p class="paragraph">Essentially, a short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> fully depends on a market sentiment pivot from bearish to bullish while there are still open positions in the previous direction.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
 <p class="paragraph"></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-for-january-2024-two-cryptocurrencies-with-potential-to-skyrocket-tbt74811.html">https://thebittimes.com/short-squeeze-alert-for-january-2024-two-cryptocurrencies-with-potential-to-skyrocket-tbt74811.html</a></p>

Short squeeze alert for January 2024: Two cryptocurrencies with potential to skyrocket

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