Cryptocurrency

Bitcoin

<div class="finbold"> 
 <p class="paragraph">This week started with a $4,000 Bitcoin (BTC) rally, accruing 10% gains from the lowest to the highest price on January 8. Some <a rel="dofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a> followed the leader, which overperformed the cryptocurrency market, increasing its capitalization dominance to over 54%.</p> 
 <p class="paragraph">Nevertheless, some cryptocurrencies are laggards in this bull rally, still dominated by short positions, with remaining liquidity upwards. These higher-priced liquidity pools could become market makers’ targets, favoring short-squeeze liquidation events, potentially driving prices up.</p> 
 <p class="paragraph">Essentially, a short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> happens when short positions get massively liquidated. These liquidations force purchases of the given cryptocurrency, increasing the price and bringing new liquidations for even higher prices at a spiral event.</p> 
 <p class="paragraph">In particular, Finbold spotted XRP (XRP) and BNB Chain (BNB) as two <a rel="dofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a> to watch, based on data from <em>CoinGlass</em> on January 9.</p> 
 <h2 class="wp-block-heading" id="h-will-xrp-skyrocket-with-short-liquidations">Will XRP skyrocket with short liquidations?</h2> 
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 <p class="paragraph">Notably, XRP’s liquidation heatmap shows three higher liquidity pools in the 3-day time frame. They are at $0.583, $0.590, and $0.592, favoring a short squeeze to these prices.</p> 
 <figure class="wp-block-image size-large">
  <img decoding="async" width="1024" height="559" src="https://cdn.thebittimes.com/images/2024/01/09/5b85c3043f5b1fc4eb18bf4f5472ba0b.webp" alt class="wp-image-148107" srcset="https://cdn.thebittimes.com/images/2024/01/09/5b85c3043f5b1fc4eb18bf4f5472ba0b.webp 1024w, https://cdn.thebittimes.com/images/2024/01/09/5b85c3043f5b1fc4eb18bf4f5472ba0b.webp 300w, https://cdn.thebittimes.com/images/2024/01/09/5b85c3043f5b1fc4eb18bf4f5472ba0b.webp 768w, https://cdn.thebittimes.com/images/2024/01/09/5b85c3043f5b1fc4eb18bf4f5472ba0b.webp 1536w, https://cdn.thebittimes.com/images/2024/01/09/5b85c3043f5b1fc4eb18bf4f5472ba0b.webp 2036w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   XRP 3-day liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure> 
 <p class="paragraph">However, it is important to understand that these are relatively low liquidity pools worth no more than $1,560 each. This is due to the significantly low volume of XRP in the derivatives market, which got worse in the last 24 hours, dropping 45%.</p> 
 <p class="paragraph">XRP is trading at $0.569 by press time, with only $577.09 million in short positions opened in the last 24 hours. The total daily volume is $1.04 billion, making short-sellers dominate by 51.82% of the short-term interest.</p> 
 <figure class="wp-block-image size-large">
  <img decoding="async" width="1024" height="93" src="https://cdn.thebittimes.com/images/2024/01/09/5ae175b57730bd64fd84e0274a508ba8.webp" alt class="wp-image-148108" srcset="https://cdn.thebittimes.com/images/2024/01/09/5ae175b57730bd64fd84e0274a508ba8.webp 1024w, https://cdn.thebittimes.com/images/2024/01/09/5ae175b57730bd64fd84e0274a508ba8.webp 300w, https://cdn.thebittimes.com/images/2024/01/09/5ae175b57730bd64fd84e0274a508ba8.webp 768w, https://cdn.thebittimes.com/images/2024/01/09/5ae175b57730bd64fd84e0274a508ba8.webp 1536w, https://cdn.thebittimes.com/images/2024/01/09/5ae175b57730bd64fd84e0274a508ba8.webp 1898w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   XRP derivatives volume data. Source: <em>CoinGlass</em>
  </figcaption>
 </figure> 
 <h2 class="wp-block-heading" id="short-squeeze-alert-for-bnb-on-january-9">Short squeeze alert for BNB on January 9</h2> 
 <p class="paragraph">In the meantime, BNB Chain’s native token is being massively shorted, with attractive liquidity pools upwards. There are three main short-<a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> price targets at $311.9, $312.4, and $313.3, all with more than $1 million worth of liquidations.</p> 
 <figure class="wp-block-image size-large">
  <img loading="lazy" decoding="async" width="1024" height="559" src="https://cdn.thebittimes.com/images/2024/01/09/034a2f7b03904e3c515f32a93e64386c.webp" alt class="wp-image-148109" srcset="https://cdn.thebittimes.com/images/2024/01/09/034a2f7b03904e3c515f32a93e64386c.webp 1024w, https://cdn.thebittimes.com/images/2024/01/09/034a2f7b03904e3c515f32a93e64386c.webp 300w, https://cdn.thebittimes.com/images/2024/01/09/034a2f7b03904e3c515f32a93e64386c.webp 768w, https://cdn.thebittimes.com/images/2024/01/09/034a2f7b03904e3c515f32a93e64386c.webp 1536w, https://cdn.thebittimes.com/images/2024/01/09/034a2f7b03904e3c515f32a93e64386c.webp 2036w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BNB 3-day liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure> 
 <p class="paragraph">Interestingly, BNB is more likely to see a short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> than XRP due to its higher available liquidity. The token currently trades at $304.97, but the 24-hour volume is lower than the first token. BNB has $367.36 million short positions opened in the day, with 50.36% of the $705.9 million volume.</p> 
 <figure class="wp-block-image size-large">
  <img loading="lazy" decoding="async" width="1024" height="93" src="https://cdn.thebittimes.com/images/2024/01/09/ae08bee1ec68bdd21d5fc8b34d51de45.webp" alt class="wp-image-148110" srcset="https://cdn.thebittimes.com/images/2024/01/09/ae08bee1ec68bdd21d5fc8b34d51de45.webp 1024w, https://cdn.thebittimes.com/images/2024/01/09/ae08bee1ec68bdd21d5fc8b34d51de45.webp 300w, https://cdn.thebittimes.com/images/2024/01/09/ae08bee1ec68bdd21d5fc8b34d51de45.webp 768w, https://cdn.thebittimes.com/images/2024/01/09/ae08bee1ec68bdd21d5fc8b34d51de45.webp 1536w, https://cdn.thebittimes.com/images/2024/01/09/ae08bee1ec68bdd21d5fc8b34d51de45.webp 1898w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BNB derivatives volume data. Source: <em>CoinGlass</em>
  </figcaption>
 </figure> 
 <p class="paragraph">However, the low volume for both cryptocurrencies also means that this scenario could easily shift at any moment. If a significant volume for long positions surges in the market, liquidity could favor bulls’ liquidations and stop hunts, driving the price downwards.</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>
</div> 
<p>Source: <a rel="dofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-for-january-9-two-cryptocurrencies-that-could-soar-tbt76013.html">https://thebittimes.com/short-squeeze-alert-for-january-9-two-cryptocurrencies-that-could-soar-tbt76013.html</a></p>

Short squeeze alert for January 9: Two cryptocurrencies that could soar

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