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3 cryptocurrencies set to pump this week 📈💥

3 cryptocurrencies set to pump this week 📈💥

The Crypto Market Shifts: Short Squeeze Alert for Bitcoin, Litecoin, and Ethereum

A sentiment shift took place in the cryptocurrency market, pivoting from mostly bullish to mostly bearish in a few days. Over $230 billion was wiped out in just 24 hours, resulting in the liquidation of more than 240,000 traders who held over $500 million in long positions. This sudden crash has led to an increase in short positions, creating imbalances that could potentially trigger a short squeeze. If Bitcoin short-sellers continue to dominate the open interest, they may soon face massive liquidations. However, this market condition also presents opportunities for savvy traders who know where to look.

Bitcoin (BTC): A Short Squeeze Alert

Bitcoin (BTC) is the first cryptocurrency that has triggered a short squeeze alert due to its accumulated liquidity to the upside. The weekly chart on CoinGlass shows concentrated liquidations of short-sellers at $74,346, which could become a target for a short squeeze. Additionally, there are smaller liquidity pools at other levels that could contribute to driving the price above $75,000. Notably, MartyParty has identified $8.1 billion of liquidations at $75,500, making it a significant zone to consider.

Litecoin (LTC): Potential for a Short Squeeze

Litecoin (LTC) is the second most likely cryptocurrency to experience a short squeeze, as it has a high accumulation of short positions. Market makers may first target a liquidity pool above $95 and then anticipate significant liquidations around the psychological resistance level of $100.

Ethereum (ETH): Pump Potential and Liquidity Pools

Ethereum (ETH) also shows potential for a pump and has multiple liquidity pools to the upside. However, the liquidation volume for ETH is proportionally smaller compared to its market cap and historical liquidations. Nevertheless, certain price levels gain the spotlight with higher leverage margin calls. Levels such as $3,600, $3,700, and above $4,000 are likely targets for a short squeeze.

It’s important to note that opening leveraged short positions exposes traders to liquidations and can incentivize the market to move in the opposite direction of most speculators’ biases. The cryptocurrency market is highly volatile, and professional traders take advantage of this nature to increase their profits. Therefore, caution is advised when speculating and trading cryptocurrencies.

Hot Take: Opportunities and Risks in a Shifting Crypto Market

The recent sentiment shift in the cryptocurrency market has created both opportunities and risks for traders. While the crash led to a bearish outlook and increased short positions, it also opened up the potential for a short squeeze in certain cryptocurrencies. By identifying liquidity pools and key price levels, traders can position themselves strategically to take advantage of potential price surges.

However, it’s crucial to exercise caution and conduct thorough research before making any investment decisions. The crypto market is highly unpredictable, and sudden shifts can result in significant losses if not properly managed. It’s recommended to stay informed about market trends, utilize risk management strategies, and consider the advice of experienced professionals.

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3 cryptocurrencies set to pump this week 📈💥