Cryptocurrency Long Squeeze Alert: Bitcoin and Ethereum On the Brink of Significant Retracement
Crypto Long Squeeze Alert: BTC & ETH Potential Retracement Levels Revealed
In a rallying cryptocurrency landscape, each pump and opened long position leave liquidity pools behind, which can cause long squeezes. Therefore, traders can look for cryptocurrencies with an increased volume of longs to prepare for retracements.
Derivatives Market Analysis
Finbold gathered data from CoinGlass on March 2 to analyze the derivatives market. Bitcoin (BTC) and Ethereum (ETH) have surged, accumulating massive gains, but a correction may be imminent.
Understanding Long Squeeze Effect
Long squeezes occur when the market hits the liquidation price of trading contracts, leading to downward price pressure. This phenomenon can trigger a cascade effect of liquidations, impacting market volatility.
Retracement Levels for BTC and ETH
Bitcoin could see a long squeeze at $50,000, while Ethereum may retrace to $2,400, potentially causing significant losses for traders.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.