Bitcoin’s Price Reaches Critical Level
Bitcoin (BTC) is once again testing the critical $43,000 price zone. After losing it on December 11 and facing rejection last week from December 13 to 15, crypto investors are anxiously awaiting a breakout or a bounce backward.
Divergence in Short Positions
While most cryptocurrencies are following Bitcoin’s bullish short-term sentiment, two of its direct competitors, Litecoin (LTC) and Bitcoin Cash (BCH), are showing a larger volume of opened short positions in the last 12 and 24 hours compared to long positions.
Litecoin, often referred to as “digital silver” in contrast to Bitcoin’s “digital gold,” is currently trading at $71.16.
In the last 12 and 24 hours, short positions of $74.33 million (53.31%) and $154.11 million (52.40%) were opened, respectively. This is in contrast to long positions of $65.11 million and $140.01 million in the same time frames.
Litecoin is currently ranked 18th with a market cap of $5.26 billion. The 24-hour exchange volume exceeds the shorts by only $115 million, potentially leading to a short squeeze event.
Litecoin market cap and volume (24h).
Bitcoin Cash is currently trading at $228.33, with approximately 3% daily gains. In the last 24 hours, there have been short positions totaling $103.98 million.
Within the last 12 hours, $52.46 million of these shorts were opened, accounting for 51.83% and 52.87% of the respective open interest volumes.
Considering both Litecoin and Bitcoin Cash have similar capitalization and exchange volumes, BCH is less likely to experience a short squeeze compared to LTC.
No Certainty of Such Events
It’s important to note that there are no guarantees that these cryptocurrencies will witness short squeeze events. Market conditions can change swiftly, making it imperative for investors to stay vigilant and adapt accordingly.