Cryptocurrency

Bitcoin ETF

Grok

Bitcoin

<div class="finbold">
 <p class="paragraph">The cryptocurrency market sentiment has shifted to bearish during this week’s retracement following the Bitcoin ETF‘s approval. However, some indicators signal this downtrend is about to end, which could trigger short squeezes against the crypto short sellers.</p>
 <p class="paragraph">Notably, the total crypto market cap lost $132.5 billion (7.68%) in the last seven days since January 12. The movement accumulated $4.95 trillion in volume, and the Relative Strength Index (RSI) slightly recovered from the oversold threshold.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="661" src="https://cdn.thebittimes.com/images/2024/01/19/e69a14697d8cd7675b1bf69748b72e8b.webp" alt class="wp-image-150024" srcset="https://cdn.thebittimes.com/images/2024/01/19/e69a14697d8cd7675b1bf69748b72e8b.webp 1024w, https://cdn.thebittimes.com/images/2024/01/19/e69a14697d8cd7675b1bf69748b72e8b.webp 300w, https://cdn.thebittimes.com/images/2024/01/19/e69a14697d8cd7675b1bf69748b72e8b.webp 768w, https://cdn.thebittimes.com/images/2024/01/19/e69a14697d8cd7675b1bf69748b72e8b.webp 1536w, https://cdn.thebittimes.com/images/2024/01/19/e69a14697d8cd7675b1bf69748b72e8b.webp 1875w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Total Crypto Market Cap 4-hour chart. Source: <em>TradingView</em>
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 </figure>
 <p class="paragraph">In the meantime, some <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currencies continue accumulating open short positions in the derivatives market, despite technical <a rel="noopener noreferrer nofollow" title="Category Analysis" href="https://thebittimes.com/analysis.html">Analysis</a> trend reversal signs. This scenario favors a short-<a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> event, as laggard traders provide upward liquidity that might become appealing targets for market makers.</p>
 <p class="paragraph">Particularly, Finbold spotted many short liquidations still in open interest for Bitcoin (BTC) and Solana (SOL), according to <em>CoinGlass</em> data.</p>
 <h2 class="wp-block-heading" id="h-short-squeeze-alert-for-bitcoin-btc">Short squeeze alert for Bitcoin (BTC)</h2>
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 <p class="paragraph">Bitcoin’s short squeeze alert from January 16 remains valid as liquidation accumulates at higher prices. As reported on the occasion, BTC has enough liquidity from current prices to $50,000 in the weekly time frame.</p>
 <p class="paragraph">Interestingly, the 3-day liquidation heatmap suggests a short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> is gaining strength and could happen as soon as next week. In particular, $207 million of available liquidity is at $43,323, favoring an initial run to these prices really soon.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="549" src="https://cdn.thebittimes.com/images/2024/01/19/93221552a1c9c355718d6a35f06a63d7.webp" alt class="wp-image-150026" srcset="https://cdn.thebittimes.com/images/2024/01/19/93221552a1c9c355718d6a35f06a63d7.webp 1024w, https://cdn.thebittimes.com/images/2024/01/19/93221552a1c9c355718d6a35f06a63d7.webp 300w, https://cdn.thebittimes.com/images/2024/01/19/93221552a1c9c355718d6a35f06a63d7.webp 768w, https://cdn.thebittimes.com/images/2024/01/19/93221552a1c9c355718d6a35f06a63d7.webp 1536w, https://cdn.thebittimes.com/images/2024/01/19/93221552a1c9c355718d6a35f06a63d7.webp 2036w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BTC liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Bitcoin is currently trading at $41,453 and its 24-hour volume started picking up again, with over $50 billion traded. In the last 24 hours, traders opened $25.32 billion short positions, while the open interest is $18.12 billion.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="87" src="https://cdn.thebittimes.com/images/2024/01/19/f39ede570238307f7710c812bbc8c4b6.webp" alt class="wp-image-150027" srcset="https://cdn.thebittimes.com/images/2024/01/19/f39ede570238307f7710c812bbc8c4b6.webp 1024w, https://cdn.thebittimes.com/images/2024/01/19/f39ede570238307f7710c812bbc8c4b6.webp 300w, https://cdn.thebittimes.com/images/2024/01/19/f39ede570238307f7710c812bbc8c4b6.webp 768w, https://cdn.thebittimes.com/images/2024/01/19/f39ede570238307f7710c812bbc8c4b6.webp 1536w, https://cdn.thebittimes.com/images/2024/01/19/f39ede570238307f7710c812bbc8c4b6.webp 1994w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Bitcoin (BTC) derivatives data. Source: <em>CoinGlass</em>
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 </figure>
 <h2 class="wp-block-heading" id="solana-sol-short-term-trend-reversal">Solana (SOL) short-term trend reversal</h2>
 <p class="paragraph">On the other hand, Solana has lost price value, volume, and open interest in the last 24 hours. However, short positions continue to increase by $3.15 billion in the same period, accruing 51.91% of its volume.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="93" src="https://cdn.thebittimes.com/images/2024/01/19/07dd54ef45b2b4fdb536f5ca9955989f.webp" alt class="wp-image-150028" srcset="https://cdn.thebittimes.com/images/2024/01/19/07dd54ef45b2b4fdb536f5ca9955989f.webp 1024w, https://cdn.thebittimes.com/images/2024/01/19/07dd54ef45b2b4fdb536f5ca9955989f.webp 300w, https://cdn.thebittimes.com/images/2024/01/19/07dd54ef45b2b4fdb536f5ca9955989f.webp 768w, https://cdn.thebittimes.com/images/2024/01/19/07dd54ef45b2b4fdb536f5ca9955989f.webp 1536w, https://cdn.thebittimes.com/images/2024/01/19/07dd54ef45b2b4fdb536f5ca9955989f.webp 1978w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Solana (SOL) derivatives data. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">This combination of factors suggests the market could reject the current trend, which could slightly drive the prices upwards. Therefore, such behavior would be enough to trigger the closest liquidations between $95.9 to $96.8 in a small short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>.</p>
 <p class="paragraph">Further, the $100 would be the next appealing target, considering Solana’s liquidity pools.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="549" src="https://cdn.thebittimes.com/images/2024/01/19/f6f26b47f65c4d64f6014ecaad16f6e7.webp" alt class="wp-image-150029" srcset="https://cdn.thebittimes.com/images/2024/01/19/f6f26b47f65c4d64f6014ecaad16f6e7.webp 1024w, https://cdn.thebittimes.com/images/2024/01/19/f6f26b47f65c4d64f6014ecaad16f6e7.webp 300w, https://cdn.thebittimes.com/images/2024/01/19/f6f26b47f65c4d64f6014ecaad16f6e7.webp 768w, https://cdn.thebittimes.com/images/2024/01/19/f6f26b47f65c4d64f6014ecaad16f6e7.webp 1536w, https://cdn.thebittimes.com/images/2024/01/19/f6f26b47f65c4d64f6014ecaad16f6e7.webp 2036w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   SOL liquidation heatmap. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Nevertheless, it is important to understand that concentrated liquidity does not guarantee these liquidations will occur. Demand is required for prices to increase, which is necessary to trigger a short squeeze.</p>
 <p class="paragraph">In conclusion, the cryptocurrency market is unpredictable, and everything could change in a matter of hours or even minutes.</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>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-for-next-week-two-cryptocurrencies-with-potential-to-soar-tbt77092.html">https://thebittimes.com/short-squeeze-alert-for-next-week-two-cryptocurrencies-with-potential-to-soar-tbt77092.html</a></p>

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

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