Cryptocurrency Long Squeeze Alert: Bitcoin and XRP Retrace Levels
Cryptocurrency Long Squeeze Alert: Bitcoin and XRP Retrace Levels
The cryptocurrency open interest volume has hit record highs, leading to significant volatility in both derivatives and spot markets. While traders bet on cryptocurrencies like Bitcoin (BTC) and XRP, they leave positions behind, threatening liquidations. The current bullish momentum has fueled traders’ greed, inducing the opening of long positions, indicating a potential long squeeze for top-traded assets like Bitcoin.
Bitcoin (BTC): Open Interest and Funding Rates
Colin Wu reported a record high of $33.94 billion in Bitcoin open contracts, surpassing the previous ATH of $23.04 billion. The cryptocurrency's funding rate on major exchanges also reached new highs, increasing the risk of a long squeeze due to extreme imbalances.
XRP: Potential Retracement
XRP could retrace to the $0.5 price level if market makers target long positions, as indicated by liquidity pools. While XRP's liquidation pools are smaller than Bitcoin's, a long squeeze remains a possibility.
In conclusion, Bitcoin and XRP prices may fall to $50,000 and $0.50, respectively, if a long squeeze occurs. However, the volatile crypto landscape can change rapidly, and positive developments could potentially lead to price surges instead of declines. Investors should exercise caution and avoid extensive exposure.
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.