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Short squeeze alert for November 10: Two cryptocurrencies with potential to skyrocket

Short squeeze alert for November 10: Two cryptocurrencies with potential to skyrocket

The cryptocurrency market went through a massive volatility event in the past 24 hours, first to the upside and later to the downside. High volatility also means high derivatives volume and liquidity, which creates long-liquidations and short-squeeze opportunities.

With that in mind, Finbold turned to CoinGlass on November 9 and gathered data about long/short ratios from the top cryptocurrencies.

In particular, we found two digital assets with relevant imbalances favoring short positions. This extra liquidity might become attractive for market makers to seek short squeezes for November 10.

However, an increased short imbalance is also seen as a bearish signal, reflecting a negative sentiment for the project moving further. Investors and cryptocurrency traders must be capable of analyzing multiple indicators in order to make profitable decisions.

Bitcoin Cash (BCH) short squeeze

Bitcoin Cash (BCH) suffered with a major volatility in the day, trading as high as $255.54 but retracing back to $231.69 at the time of publication. Essentially, BCH returned to price levels of a week ago, registering 4.95% losses in the last 24 hours.

BCH 1-week price chart. Source: Finbold

The price retracement brought a dominant bearish sentiment and a meaningful increase in short positions. Notably, Bitcoin Cash has $376.06 million in derivatives betting for lower prices within the next 12 hours. This means a 52.67% imbalance that could trigger a short squeeze for BCH.

BCH long/short ratio for 12 and 24 hours. Source: CoinGlass

Dogecoin (DOGE) short squeeze

Meanwhile, Dogecoin (DOGE) has also seen an aggressive retracement from $0.0774 to $0.0716, by press time. Nevertheless, DOGE was able to hold part of its weekly performance.

DOGE 1-week price chart. Source: Finbold

Despite stronger price support, derivative traders also showed bearish dominance on Dogecoin, with increased short positions that could be squeezed at any time. Interestingly, there is a massive $628.60 million in shorts (52.39%) for a 12-hour time frame and $959.73 million (51.70%) for a 24-hour time frame.

DOGE long/short ratio for 12 and 24 hours. Source: CoinGlass

Both Dogecoin and Bitcoin Cash have seen high liquidation events in the past against short-sellers. In this context, the bearish dominance could trigger short squeezes for both cryptocurrencies or feed a pivotal downtrend for the rest of the week.

It is important to say that the recent plummet in price could have been a result of long liquidations.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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