Bitcoin and Ethereum Short Squeeze: What to Expect Next Week
As the cryptocurrency market teeters on the brink of uncertainty, liquidation pools in the top two cryptocurrencies, Bitcoin and Ethereum, pose a potential threat of a short squeeze. The liquidation of short positions against these digital giants could lead to a surge in prices next week. Here’s what you need to know:
The Bitcoin Short Squeeze Scenario
- Bitcoin lost crucial support on April 1, down nearly 7% month-to-date, trading at $66,773.
- Futures traders have been favoring short positions against Bitcoin and Ethereum.
- Billions of dollars in leveraged liquidity pools above $72,000 suggest market makers might target Bitcoin short-sellers.
Will Ethereum See a Pump Next Week?
- Ethereum has accumulated high short liquidations below $3,700, with a target around $4,100 per Ether.
- Like Bitcoin, Ethereum’s funding rate indicates a potential delay in a short squeeze.
- A bearish sentiment coupled with increased volume could expedite this event for Ethereum.
Hot Take: Brace Yourself for a Possible Short Squeeze
Both Bitcoin and Ethereum show promising signs of a short squeeze and a subsequent price surge in the coming week. It could result in substantial gains for both cryptocurrencies, but traders should exercise caution and monitor funding rates to gauge the likelihood of a liquidation event.
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