The cryptocurrency market sentiment has shifted to bearish during this week’s retracement following the Bitcoin ETF‘s approval. However, some indicators signal this downtrend is about to end, which could trigger short squeezes against the crypto short sellers.
Notably, the total crypto market cap lost $132.5 billion (7.68%) in the last seven days since January 12. The movement accumulated $4.95 trillion in volume, and the Relative Strength Index (RSI) slightly recovered from the oversold threshold.
Total Crypto Market Cap 4-hour chart. Source: TradingView
In the meantime, some cryptocurrencies continue accumulating open short positions in the derivatives market, despite technical analysis trend reversal signs. This scenario favors a short-squeeze event, as laggard traders provide upward liquidity that might become appealing targets for market makers.
Particularly, Finbold spotted many short liquidations still in open interest for Bitcoin (BTC) and Solana (SOL), according to CoinGla
We współpracy z: https://finbold.com/short-squeeze-alert-for-next-week-two-cryptocurrencies-with-potential-to-soar/
