Ethereum

Solana

Bitcoin

DeFi

April

<div class="finbold">
 <p class="paragraph">While the cryptocurrency market decides its next move, liquidation pools in the two leading cryptocurrencies threaten a <a rel="noopener noreferrer nofollow" title="potential" href="https://thebittimes.com/tag/potential.html">potential</a> short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a>. Bitcoin (BTC) and Ethereum (ETH) could pump next week if the market liquidates short positions betting against these finance giants.</p>
 <p class="paragraph">Bitcoin lost a trading range support on April 1 and is down nearly 7% month-to-date, at $66,773. Meanwhile, Ethereum had a similar pattern, down nearly 10% month-to-date, trading at $3,273 by press time.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="139" src="https://cdn.thebittimes.com/images/2024/04/05/ef50ebc593bfa03e6e2b29af93a159be.webp" alt class="wp-image-166626" srcset="https://cdn.thebittimes.com/images/2024/04/05/ef50ebc593bfa03e6e2b29af93a159be.webp 1024w, https://cdn.thebittimes.com/images/2024/04/05/ef50ebc593bfa03e6e2b29af93a159be.webp 300w, https://cdn.thebittimes.com/images/2024/04/05/ef50ebc593bfa03e6e2b29af93a159be.webp 768w, https://cdn.thebittimes.com/images/2024/04/05/ef50ebc593bfa03e6e2b29af93a159be.webp 1536w, https://cdn.thebittimes.com/images/2024/04/05/ef50ebc593bfa03e6e2b29af93a159be.webp 1758w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Derivatives market data of Bitcoin and Ethereum. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">In this context, cryptocurrency Futures traders have favored opening short positions against the two most valuable cryptocurrencies. Therefore, Finbold retrieved data from <em>CoinGlass</em> on April 5 to understand the risks and <a rel="noopener noreferrer nofollow" title="potential" href="https://thebittimes.com/tag/potential.html">potential</a> of a short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> pump.</p>
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 <h2 class="wp-block-heading" id="h-will-bitcoin-btc-short-<a rel=" dofollow title="squeeze" href="https://thebittimes.com/tag/squeeze.html" rel="noopener noreferrer nofollow">squeeze-next-week"&gt;Will Bitcoin (BTC) short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> next week?</h2>
 <p class="paragraph">In particular, liquidation data for the maiden cryptocurrency suggests market makers could target Bitcoin short-sellers in the following days. There are billions of dollars in leveraged liquidity pools above the $72,000 level to as high as $75,000.</p>
 <p class="paragraph">The Bitcoin halving, expected on April 20, could act as fuel for a potential pump that might liquidate these traders. Moreover, Finbold reported a buy signal for an oversold Bitcoin early this week, which could ignite this movement.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="526" src="https://cdn.thebittimes.com/images/2024/04/05/850d475406e566ad23aa894208b050ed.webp" alt class="wp-image-166624" srcset="https://cdn.thebittimes.com/images/2024/04/05/850d475406e566ad23aa894208b050ed.webp 1024w, https://cdn.thebittimes.com/images/2024/04/05/850d475406e566ad23aa894208b050ed.webp 300w, https://cdn.thebittimes.com/images/2024/04/05/850d475406e566ad23aa894208b050ed.webp 768w, https://cdn.thebittimes.com/images/2024/04/05/850d475406e566ad23aa894208b050ed.webp 1536w, https://cdn.thebittimes.com/images/2024/04/05/850d475406e566ad23aa894208b050ed.webp 1838w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Bitcoin (BTC) liquidation heatmap in a 1-month time frame. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">However, derivatives market data for Bitcoin is not conclusive in the occurrence of a short squeeze. That is due to BTC displaying relatively low funding rates, which indicates Bitcoin’s open interest is balanced among short and long positions. Thus, market makers and professional traders could wait for a higher imbalance before making the big move.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="244" src="https://cdn.thebittimes.com/images/2024/04/05/b7d813d201ff110270f96b5584918703.webp" alt class="wp-image-166631" srcset="https://cdn.thebittimes.com/images/2024/04/05/b7d813d201ff110270f96b5584918703.webp 1024w, https://cdn.thebittimes.com/images/2024/04/05/b7d813d201ff110270f96b5584918703.webp 300w, https://cdn.thebittimes.com/images/2024/04/05/b7d813d201ff110270f96b5584918703.webp 768w, https://cdn.thebittimes.com/images/2024/04/05/b7d813d201ff110270f96b5584918703.webp 1536w, https://cdn.thebittimes.com/images/2024/04/05/b7d813d201ff110270f96b5584918703.webp 1832w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BTC OI-weighted funding rate, 8-hour chart. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="pump-potential-for-ethereum-eth-next-week">Pump potential for Ethereum (ETH) next week</h2>
 <p class="paragraph">As for Ethereum, the leading Web3 and DeFi cryptocurrency, has two relevant margin liquidity pools. First, at slightly below the $3,700 mark, ETH displays one of the highest accumulated short liquidations in one month. Next, aiming at a target of around $4,100 per Ether.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="526" src="https://cdn.thebittimes.com/images/2024/04/05/2daef7cfdb186820c00c34376db26104.webp" alt class="wp-image-166632" srcset="https://cdn.thebittimes.com/images/2024/04/05/2daef7cfdb186820c00c34376db26104.webp 1024w, https://cdn.thebittimes.com/images/2024/04/05/2daef7cfdb186820c00c34376db26104.webp 300w, https://cdn.thebittimes.com/images/2024/04/05/2daef7cfdb186820c00c34376db26104.webp 768w, https://cdn.thebittimes.com/images/2024/04/05/2daef7cfdb186820c00c34376db26104.webp 1536w, https://cdn.thebittimes.com/images/2024/04/05/2daef7cfdb186820c00c34376db26104.webp 1838w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Ethereum (ETH) liquidation heatmap in a 1-month time frame. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Nevertheless, Ethereum’s funding rate hints at the same as Bitcoin’s. The low-weighted imbalance suggests it might take a bit longer for a short squeeze to occur. On that note, a dominating bearish sentiment amid increased volume could potentially accelerate this event.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="244" src="https://cdn.thebittimes.com/images/2024/04/05/cf1b85c6d0f706d18c2553d885de9c3e.webp" alt class="wp-image-166633" srcset="https://cdn.thebittimes.com/images/2024/04/05/cf1b85c6d0f706d18c2553d885de9c3e.webp 1024w, https://cdn.thebittimes.com/images/2024/04/05/cf1b85c6d0f706d18c2553d885de9c3e.webp 300w, https://cdn.thebittimes.com/images/2024/04/05/cf1b85c6d0f706d18c2553d885de9c3e.webp 768w, https://cdn.thebittimes.com/images/2024/04/05/cf1b85c6d0f706d18c2553d885de9c3e.webp 1536w, https://cdn.thebittimes.com/images/2024/04/05/cf1b85c6d0f706d18c2553d885de9c3e.webp 1832w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   ETH OI-weighted funding rate, 8-hour chart. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">In summary, Bitcoin and Ethereum have considerable potential to face a short squeeze and a price surge next week. Moving to the aforementioned most optimistic targets would result in over 12% and 25% gains for BTC and ETH, respectively.</p>
 <p class="paragraph">Still, traders should wait for higher funding rates for both cryptocurrencies to increase the odds of such a liquidation event.</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>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/short-squeeze-alert-for-next-week-btc-and-eth-with-pump-potential-tbt84533.html">https://thebittimes.com/short-squeeze-alert-for-next-week-btc-and-eth-with-pump-potential-tbt84533.html</a></p>

Short squeeze alert for next week: BTC and ETH with pump potential

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