At dawn, $BTC pierced through the 87000 US dollar level, and in the derivatives market, a concentrated short liquidation unfolded. With the passive covering buy orders from several hundred million dollars’ worth of short positions surging in an instant, prices were quickly pushed up to multi-month highs. However, the subsequent spike-and-retrace swiftly pulled the market into a test phase for liquidity absorption.
Once the mechanical pushing force caused by the short squeeze is exhausted, the market’s true depth becomes visible. After taking profits near the 87200 US dollar area, price retreated to around 85900 US dollars. This range is not only the core area where short-term positions change hands densely, but also the key zone for assessing whether spot buying has the sustained intention to keep accumulating.
The crux right now is whether spot funds can provide solid, proactive buying during the pullback. If liquidity can be held above 85500 US dollars, the bulls still have the motivation to reorganize and attempt another advance. If, however, spot follow-through breaks down, caution is needed as price may seek deeper liquidity support further down, near the 83000 US dollar area.
Once the mechanical pushing force caused by the short squeeze is exhausted, the market’s true depth becomes visible. After taking profits near the 87200 US dollar area, price retreated to around 85900 US dollars. This range is not only the core area where short-term positions change hands densely, but also the key zone for assessing whether spot buying has the sustained intention to keep accumulating.
The crux right now is whether spot funds can provide solid, proactive buying during the pullback. If liquidity can be held above 85500 US dollars, the bulls still have the motivation to reorganize and attempt another advance. If, however, spot follow-through breaks down, caution is needed as price may seek deeper liquidity support further down, near the 83000 US dollar area.