This weekend brings an interesting twist to the crypto market, with a notable prevalence of short positions over longs in a specific group of cryptocurrencies.
Notably, Axie Infinity ($AXS) and Bitcoin Cash ($BCH) defy the general trend, standing out as exceptions among traders who anticipate an imminent market bounce.
In this unique scenario, where shorts outweigh longs, the focus is on potential short liquidations. Traders are closely monitoring whether these liquidations, at their current values, could act as a catalyst, essentially becoming the “rocket fuel” that propels market values upward.
Notable Market Crypto Movement To Watch
Bitcoin Cash currently has a Return on Investment (ROI) of -54%, but intriguingly, it has seen a 5% gain over the past week. This gain is particularly noteworthy as traders continue to pay longs to bet against the asset’s price, according to data from Santiment.
The market sentiment for Bitcoin Cash is reflected in the current negative ROI, but recent developments hint at potential shifts.
📉🙏 #AxieInfinity and #BitcoinCash are among the very slim group of #crypto assets that are seeing a higher ratio of shorts than longs this weekend. Traders appear to be confident of a market bounce upcoming, and $BCH & $AXS are two exceptions. Short liquidations
(Cont) 👇 pic.twitter.com/nqx94rbSCZ
— Santiment (@santimentfeed) January 14, 2024
On the other hand, Axie Infinity (AXS) has experienced a marginal 0.8% gain in the past week. What sets AXS apart is the dynamic of traders paying longs to bet against the asset’s price, as revealed by Santiment data.
Despite this shorting trend, Axie Infinity has an impressive ROI of 7800%, underlining its resilience and attractiveness to investors.
As the weekend unfolds, traders are closely observing these short positions, wondering if they will indeed act as the anticipated “rocket fuel” to drive up market values. The unique dynamics of Axie Infinity and Bitcoin Cash add an extra layer of intrigue to the evolving crypto landscape.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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