Short squeeze alert for February: Two cryptocurrencies about to skyrocket
The cryptocurrency market remains in a consolidation range, struggling to decide which direction to follow. In this context, some cryptocurrencies maintain an increased open interest in short positions, creating short- squeeze opportunities for February. A short squeeze happens when short-sellers are liquidated, facing a sudden price surge. These liquidations force traders to repurchase the cryptocurrency, driving the price to higher levels, triggering further liquidations, and potentially making it skyrocket. Looking for insights, Finbold gathered data from CoinGlass ’s liquidation heatmap on February 6. In particular, we spotted cumulated short liquidations on Arbitrum (ARB) and Curve (CRV) in the monthly time frame. Short squeeze alert for Arbitrum (ARB) in February First, Arbitrum has a heavy liquidity accumulation in the $2.4 price level. More specifically, there are $33,150 in short liquidations at $2.414, making it an appealing target for market makers. ARB 1-month liqui...