š° Why did short-chain activity suddenly go wild? $793.2M liquidation reveals a new variable
I mentioned this just a couple of days ago, and now thereās new progress. Bitcoin has just broken through a key resistance levelāat $85,806, a large liquidation ācraterā was carved out, forcing $793.2M in funds to be closed out during the sharp short-term drop, which directly released suppressed buy pressure. Why is this news important? Itās simple: short-long funds fled in desperation, giving the bears the opportunity to cover. But the market response is strangeārather than continuing to sell off, it formed a strong rebound. What does this mean? Short-selling pressure has been consumed to its limit, and buyersā willingness to take over has increased. This kind of phenomenon has shown up in previous bull-market breakouts of resistanceātypically accompanied by rapid absorption of short pressure, leading the market into an acceleration phase.
From an execution standpoint, the $793.2M released by this short liquidation is a massive burst of energy. If, going forward, it can hold above the $86,500 short-term high area, then the upward momentum will be further confirmed. If it instead breaks down below the $84,500 short-pressure dense zone, then this thesis is invalidated. This article has no project sponsorship, and the author does not hold any of the assets mentioned.
$BTC $ETH #BTC #ETH
ā ļø Not investment advice; predictions are for reference only
#BTCš24h +6.57%
I mentioned this just a couple of days ago, and now thereās new progress. Bitcoin has just broken through a key resistance levelāat $85,806, a large liquidation ācraterā was carved out, forcing $793.2M in funds to be closed out during the sharp short-term drop, which directly released suppressed buy pressure. Why is this news important? Itās simple: short-long funds fled in desperation, giving the bears the opportunity to cover. But the market response is strangeārather than continuing to sell off, it formed a strong rebound. What does this mean? Short-selling pressure has been consumed to its limit, and buyersā willingness to take over has increased. This kind of phenomenon has shown up in previous bull-market breakouts of resistanceātypically accompanied by rapid absorption of short pressure, leading the market into an acceleration phase.
From an execution standpoint, the $793.2M released by this short liquidation is a massive burst of energy. If, going forward, it can hold above the $86,500 short-term high area, then the upward momentum will be further confirmed. If it instead breaks down below the $84,500 short-pressure dense zone, then this thesis is invalidated. This article has no project sponsorship, and the author does not hold any of the assets mentioned.
$BTC $ETH #BTC #ETH
ā ļø Not investment advice; predictions are for reference only
#BTCš24h +6.57%
