Short squeeze alert for December 8: Two cryptocurrencies with potential to skyrocket
An altseason is brewing in the cryptocurrency market, with most cryptocurrencies showing bullish signals Most projects now have a balanced long/short ratio in the derivative market, which hardens the likelihood of a short squeeze event
Looking into data by CoinGlass on December 8, Finbold spotted two particular cryptocurrencies with asslightly higher weight towards short positions.m Essentially short-sellers dominance usually indicates a bearish sentiment but also creates an appealing upward liquidity for short squeezes.
In particular BNB Chain (BNB) and Bitcoin Cash (BCH) show an open interest heavily weighted toward shorts over long positions in both the 12 and 24-hour time frames. If an altseason really occurs these two digital assets could face a short squeeze.
BNB Chain (BNB) short squeeze alert
Notably, uncertainty over the cryptocurrency exchange Binance also affects the BNB’s performance. This impact can be observed in a dominant bearish indicator for open short positions in derivatives.
The native BNB Chain token is trading at $234.57 by press time, with 52% of shorts dominance. Respectively, there are $194.05 million and $331.90 million in open short positions in the last 12 and 24 hours
BNB Long/Short ratio on 12 and 24 hours Source: CoinGlass
Bitcoin Cash (BCH) short-sellers could be liquidated
In the meantime, Bitcoin Cash is another highly shorted cryptocurrency. For that reason, it has also experienced aggressive short squeezes in the past, which could occur again under the right conditions.
Interestingly, there are $150.43 million of opened short positions in the last 24 hours. Out of which, $66.23 million happened in the last 12 hours, for 53.73% of this time frame open interest
BCH Long/Short ratio on 12 and 24 hours
A short squeeze occurs when these bearish positions get liquidated facing a surge in demand and price The increased demand causes a high volume of buy orders to liquidate exchange books
#BTC $BCH $BNB
