Short squeeze alert for January 9: Two cryptocurrencies that could soar

This week started with a $4,000 Bitcoin (BTC) rally, accruing 10% gains from the lowest to the highest price on January 8. Some cryptocurrencies followed the leader, which overperformed the cryptocurrency market, increasing its capitalization dominance to over 54%.

Nevertheless, some cryptocurrencies are laggards in this bull rally, still dominated by short positions, with remaining liquidity upwards. These higher-priced liquidity pools could become market makers’ targets, favoring short-squeeze liquidation events, potentially driving prices up.

Essentially, a short squeeze happens when short positions get massively liquidated. These liquidations force purchases of the given cryptocurrency, increasing the price and bringing new liquidations for even higher prices at a spiral event.

In particular, Finbold spotted XRP (XRP) and BNB Chain (BNB) as two cryptocurrencies to watch, based on data from CoinGlass on January 9.