Bitcoin Cash

Cryptocurrency

Bitcoin

Optimism

Avalanche

<div class="finbold">
 <p class="paragraph">Cryptocurrency short-sellers have benefited in the last two months amid a short-term downtrend for the crypto market since March. Conversely, Finbold has spotted two cryptocurrencies signaling potential short squeezes and price surges for next week.</p>
 <p class="paragraph">In this context, bullish diverges appeared in the price charts and among notable technical indicators, signaling a trend reversal. This fuels the usual short-squeeze alerts: negative funding rates, short-position volume increases, and leverage liquidations accumulation at higher levels.</p>
 <p class="paragraph">Moreover, a rising optimism in India with reopened doors for offshore crypto exchanges validates the market potential for the following weeks from a regulatory and fundamental perspective.</p>
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 <p class="paragraph">As a result, cryptocurrencies that hold significant imbalances in the derivatives market could be the first to skyrocket.</p>
 <h2 class="wp-block-heading" id="h-short-squeeze-alert-for-avalanche-avax">Short squeeze alert for Avalanche (AVAX)</h2>
 <p class="paragraph">Avalanche (AVAX) is one of the likely <a rel="noopener noreferrer nofollow" title="cryptocurrencies" href="https://thebittimes.com/tag/cryptocurrencies.html">cryptocurrencies</a> to suffer a short <a rel="noopener noreferrer nofollow" title="squeeze" href="https://thebittimes.com/tag/squeeze.html">squeeze</a> next week, <a rel="noopener noreferrer nofollow" title="potential" href="https://thebittimes.com/tag/potential.html">potential</a>ly sending its price <a rel="noopener noreferrer nofollow" title="skyrocket" href="https://thebittimes.com/tag/skyrocket.html">skyrocket</a>ing. In particular, considering a relevant weekly open interest for short positions among <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency traders.</p>
 <p class="paragraph">This has increased the negative funding rates for AVAX, with short-sellers paying a 5.8% APR to long-position traders. Finbold retrieved this data from <em>CoinGlass</em> on May 11, alongside other relevant indicators.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="517" src="https://cdn.thebittimes.com/images/2024/05/11/ded3039804f63826383b55b0be5ed3d9.webp" alt class="wp-image-175256" srcset="https://cdn.thebittimes.com/images/2024/05/11/ded3039804f63826383b55b0be5ed3d9.webp 1024w, https://cdn.thebittimes.com/images/2024/05/11/ded3039804f63826383b55b0be5ed3d9.webp 300w, https://cdn.thebittimes.com/images/2024/05/11/ded3039804f63826383b55b0be5ed3d9.webp 768w, https://cdn.thebittimes.com/images/2024/05/11/ded3039804f63826383b55b0be5ed3d9.webp 1536w, https://cdn.thebittimes.com/images/2024/05/11/ded3039804f63826383b55b0be5ed3d9.webp 1834w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Funding Rate Heatmap: AVAX. Source: <em>CoingGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Notably, Avalanche’s 1-month liquidation heatmap shows a critical liquidity pool at $40 per token, which could become a short-squeeze target. A rally to this level would reward AVAX traders with over 17% quick gains from current prices at $34.</p>
 <figure class="wp-block-image size-large"><img decoding="async" width="1024" height="529" src="https://cdn.thebittimes.com/images/2024/05/11/6202f8cefb768517d927bf7e0ae32453.webp" alt class="wp-image-175257" srcset="https://cdn.thebittimes.com/images/2024/05/11/6202f8cefb768517d927bf7e0ae32453.webp 1024w, https://cdn.thebittimes.com/images/2024/05/11/6202f8cefb768517d927bf7e0ae32453.webp 300w, https://cdn.thebittimes.com/images/2024/05/11/6202f8cefb768517d927bf7e0ae32453.webp 768w, https://cdn.thebittimes.com/images/2024/05/11/6202f8cefb768517d927bf7e0ae32453.webp 1536w, https://cdn.thebittimes.com/images/2024/05/11/6202f8cefb768517d927bf7e0ae32453.webp 1834w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   AVAX Liquidation Heatmap, 1-month. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <h2 class="wp-block-heading" id="bitcoin-cash-bch-price-skyrocketing-potential">Bitcoin Cash (BCH) price skyrocketing potential</h2>
 <p class="paragraph">Similarly, Bitcoin Cash (BCH) has a notable negative funding rate of 10.06%, with the 10th highest open interest in the market.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="517" src="https://cdn.thebittimes.com/images/2024/05/11/45d319491362ad67aebbad20ab874d34.webp" alt class="wp-image-175258" srcset="https://cdn.thebittimes.com/images/2024/05/11/45d319491362ad67aebbad20ab874d34.webp 1024w, https://cdn.thebittimes.com/images/2024/05/11/45d319491362ad67aebbad20ab874d34.webp 300w, https://cdn.thebittimes.com/images/2024/05/11/45d319491362ad67aebbad20ab874d34.webp 768w, https://cdn.thebittimes.com/images/2024/05/11/45d319491362ad67aebbad20ab874d34.webp 1536w, https://cdn.thebittimes.com/images/2024/05/11/45d319491362ad67aebbad20ab874d34.webp 1834w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   Funding Rate Heatmap: BCH. Source: <em>CoingGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">Meanwhile, BCH could go as high as $625 after hitting the previous liquidation target of $500 in two short-squeeze events. This would result in gains from 16% to 45%, considering Bitcoin Cash currently trades at $430.</p>
 <figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="529" src="https://cdn.thebittimes.com/images/2024/05/11/23e1e543bd4bfe5098a223a988b2c5c0.webp" alt class="wp-image-175259" srcset="https://cdn.thebittimes.com/images/2024/05/11/23e1e543bd4bfe5098a223a988b2c5c0.webp 1024w, https://cdn.thebittimes.com/images/2024/05/11/23e1e543bd4bfe5098a223a988b2c5c0.webp 300w, https://cdn.thebittimes.com/images/2024/05/11/23e1e543bd4bfe5098a223a988b2c5c0.webp 768w, https://cdn.thebittimes.com/images/2024/05/11/23e1e543bd4bfe5098a223a988b2c5c0.webp 1536w, https://cdn.thebittimes.com/images/2024/05/11/23e1e543bd4bfe5098a223a988b2c5c0.webp 1834w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   BCH Liquidation Heatmap, 1-month. Source: <em>CoinGlass</em>
  </figcaption>
 </figure>
 <p class="paragraph">However, other factors could prevent the forecasted trend reversal and short squeezes for AVAX, BCH, or other cryptocurrencies. Traders must remain cautious while opening leveraged positions and speculating in this volatile landscape.</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-the-week-two-cryptocurrencies-with-potential-to-skyrocket-tbt88059.html">https://thebittimes.com/short-squeeze-alert-for-the-week-two-cryptocurrencies-with-potential-to-skyrocket-tbt88059.html</a></p>

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

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