Cryptocurrency

Bitcoin

Dogecoin

<div class="finbold"> 
 <p class="paragraph">Recent events in the cryptocurrency market completely shifted sentiment from neutral to bullish. The SEC finally approved Bitcoin spot ETFs, igniting a bull rally for most cryptocurrencies.</p> 
 <p class="paragraph">In this occurrence, traders closed millions of dollars worth of short positions, reducing the likelihood of short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>s. Nevertheless, it is still possible to find small liquidity pools in the market, which can quickly become market makers’ targets.</p> 
 <p class="paragraph">By opening a short position, traders create liquidity pools upwards, due to stop losses and pre-defined margin call prices. Essentially, if the cryptocurrency reaches these prices, the positions are closed or liquidated, <a rel="dofollow" title="skyrocket" href="https://thebittimes.com/tag/skyrocket.html">skyrocket</a>ing the price on further liquidity pools. This is what is called a short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>.</p> 
 <p class="paragraph">In particular, Dogecoin (DOGE) and BNB Chain (BNB) still have some liquidity at higher price levels despite their low volume. Finbold used data from <em>CoinGlass</em>, retrieved on January 11.</p> 
 <h2 class="wp-block-heading" id="h-short-squeeze-alert-for-dogecoin-doge">Short squeeze alert for Dogecoin (DOGE)</h2> 
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       <h3 class="font-bold leading-6 " id="bitcoin-and-ethereum-short-squeezed-on-january-2-for-massive-liquidations"> Bitcoin and Ethereum short-squeezed on January 2 for massive liquidations </h3> 
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 <p class="paragraph">Dogecoin is trading at $0.08483 by press time, up 7.18% in the last 24 hours. However, DOGE registers a 32% volume loss of $1.33 billion in derivatives operations. From that, $703.37 million (51.18%) are recently opened short positions.</p> 
 <figure class="wp-block-image size-large">
  <img decoding="async" width="1024" height="97" src="https://cdn.thebittimes.com/images/2024/01/11/9095b909371ef4d21ebb6186f278ad00.webp" alt class="wp-image-148563" srcset="https://cdn.thebittimes.com/images/2024/01/11/9095b909371ef4d21ebb6186f278ad00.webp 1024w, https://cdn.thebittimes.com/images/2024/01/11/9095b909371ef4d21ebb6186f278ad00.webp 300w, https://cdn.thebittimes.com/images/2024/01/11/9095b909371ef4d21ebb6186f278ad00.webp 768w, https://cdn.thebittimes.com/images/2024/01/11/9095b909371ef4d21ebb6186f278ad00.webp 1536w, https://cdn.thebittimes.com/images/2024/01/11/9095b909371ef4d21ebb6186f278ad00.webp 1898w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   DOGE derivatives market volume. Source: <em>CoinGlass</em>
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 </figure> 
 <p class="paragraph">As observed in the following heatmap, these short-sellers might contribute to the formation of higher liquidity pools. Notably, the weekly liquidation chart shows a concentration above $0.086. Moreover, DOGE already started liquidating some positions as the leading meme coin moves closer to this price range.</p> 
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  <img decoding="async" width="1024" height="503" src="https://cdn.thebittimes.com/images/2024/01/11/fe0f0f4f87250d27258b975fcba01865.webp" alt class="wp-image-148565" srcset="https://cdn.thebittimes.com/images/2024/01/11/fe0f0f4f87250d27258b975fcba01865.webp 1024w, https://cdn.thebittimes.com/images/2024/01/11/fe0f0f4f87250d27258b975fcba01865.webp 300w, https://cdn.thebittimes.com/images/2024/01/11/fe0f0f4f87250d27258b975fcba01865.webp 768w, https://cdn.thebittimes.com/images/2024/01/11/fe0f0f4f87250d27258b975fcba01865.webp 1536w, https://cdn.thebittimes.com/images/2024/01/11/fe0f0f4f87250d27258b975fcba01865.webp 2042w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   DOGE 1-week liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure> 
 <h2 class="wp-block-heading" id="bnb-chain-bnb-already-short-squeezed-is-there-more">BNB Chain (BNB) already short-squeezed; is there more?</h2> 
 <p class="paragraph">In the meantime, BNB has already proved the efficiency of liquidity pool analysis. On January 9, Finbold posted a short-squeeze alert for the token, which happened as expected. Currently, BNB Chain trades at $315 with both upward and downward liquidity.</p> 
 <figure class="wp-block-image size-large">
  <img loading="lazy" decoding="async" width="1024" height="552" src="https://cdn.thebittimes.com/images/2024/01/11/5f81f36f24311b8780df20dd0539fd31.webp" alt class="wp-image-148566" srcset="https://cdn.thebittimes.com/images/2024/01/11/5f81f36f24311b8780df20dd0539fd31.webp 1024w, https://cdn.thebittimes.com/images/2024/01/11/5f81f36f24311b8780df20dd0539fd31.webp 300w, https://cdn.thebittimes.com/images/2024/01/11/5f81f36f24311b8780df20dd0539fd31.webp 768w, https://cdn.thebittimes.com/images/2024/01/11/5f81f36f24311b8780df20dd0539fd31.webp 1536w, https://cdn.thebittimes.com/images/2024/01/11/5f81f36f24311b8780df20dd0539fd31.webp 2048w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BNB 1-week liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure> 
 <p class="paragraph">In closing, the low volume for the two <a rel="dofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a> could prevent a short <a rel="dofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> from happening. Even then, the price might continue surging if the market holds bullish momentum.</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="dofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-for-next-week-two-cryptocurrencies-with-potential-to-skyrocket-tbt76292.html">https://thebittimes.com/short-squeeze-alert-for-next-week-two-cryptocurrencies-with-potential-to-skyrocket-tbt76292.html</a></p>

Short squeeze alert for next week: Two cryptocurrencies with potential to skyrocket

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