Bitcoin Cash (BCH) Short Squeeze
Bitcoin Cash (BCH) experienced significant volatility in the past 24 hours, initially trading at $255.54 before dropping to $231.69. This represented a 4.95% loss over the same period.
The drop in price led to an increase in bearish sentiment and a notable rise in short positions. Currently, there is $376.06 million in derivatives betting on lower prices for BCH within the next 12 hours, resulting in a 52.67% imbalance that could potentially trigger a short squeeze for Bitcoin Cash.
Dogecoin (DOGE) Short Squeeze
Meanwhile, Dogecoin (DOGE) also experienced a sharp decline from $0.0774 to $0.0716, but managed to maintain some of its weekly performance. Despite this, derivative traders have shown a dominant bearish sentiment towards Dogecoin, with increased short positions that could be squeezed at any moment.
Notably, there are massive short positions amounting to $628.60 million (52.39%) for a 12-hour time frame and $959.73 million (51.70%) for a 24-hour time frame.
Both Bitcoin Cash and Dogecoin have witnessed significant liquidation events against short-sellers, leading to potential short squeezes for both cryptocurrencies or contributing to a downward trend for the rest of the week.
Hot Take: Cryptocurrency Market Volatility Sparks Potential Short Squeezes
The recent volatility in the cryptocurrency market has created opportunities for short squeezes, especially for Bitcoin Cash and Dogecoin. The imbalance favoring short positions in both assets could lead to increased liquidity and potential short squeeze scenarios. It is crucial for investors and traders to closely monitor these developments and consider multiple indicators before making any trading decisions.
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