Altseason on the Horizon: Potential Short Squeeze for BNB Chain (BNB) and Bitcoin Cash (BCH)
An altseason is brewing in the cryptocurrency market, with bullish signals emerging for most cryptocurrencies. This is evident in the balanced long/short ratio in the derivative market, which increases the likelihood of a short squeeze event. CoinGlass data from December 8 reveals two specific cryptocurrencies that have a slightly higher weight towards short positions, namely BNB Chain (BNB) and Bitcoin Cash (BCH). While short-sellers dominance usually signifies a bearish sentiment, it also creates an attractive upward liquidity for potential short squeezes.
BNB Chain (BNB) Short Squeeze Alert
Notably, the uncertainty surrounding the cryptocurrency exchange Binance has an impact on the performance of BNB Chain. This can be seen through a dominant bearish indicator for open short positions in derivatives. Currently, the native BNB Chain token is trading at $234.57, with 52% of shorts dominance. In the last 12 and 24 hours, there are $194.05 million and $331.90 million worth of open short positions respectively.
Bitcoin Cash (BCH) Short-Sellers Could Be Liquidated
Bitcoin Cash is another highly shorted cryptocurrency that has experienced aggressive short squeezes in the past. It could potentially happen again under favorable conditions. Interestingly, there are $150.43 million of opened short positions in the last 24 hours, with $66.23 million occurring in the last 12 hours accounting for 53.73% of this time frame’s open interest.
A short squeeze occurs when these bearish positions get liquidated due to a surge in demand and price. The increased demand triggers a high volume of buy orders, leading to the liquidation of exchange books, pumping the price even further and triggering derivative contracts for liquidation.
However, it’s important to note that there are no guarantees that a short squeeze will happen with these cryptocurrencies. As a crypto investor, it is crucial to conduct your own research and consider other data to make profitable financial decisions.
Hot Take: Potential Altseason and Short Squeeze Opportunities
An altseason appears to be underway in the cryptocurrency market, with BNB Chain (BNB) and Bitcoin Cash (BCH) showing potential for short squeeze opportunities. The balanced long/short ratio in the derivative market suggests a bullish sentiment and increases the likelihood of a short squeeze event. However, it is important for crypto investors to exercise caution and conduct thorough research before making any financial decisions. The cryptocurrency market is highly volatile, and while short squeezes can lead to significant price increases, they are not guaranteed. Stay informed and make informed choices in this dynamic market.
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