The chart from Binance shows one of the largest short squeezes in the history of Bitcoin futures on the exchange.
In just a few hours, more than $311 million in short positions were liquidated on Binance alone. In the overall market, the volume of forced shorts surpassed $1.4 billion yesterday, but what matters is today’s move.
The price surged strongly yesterday, and the SELL positions began to be liquidated; however, not everyone was liquidated yesterday… since many added more money to their positions to try to stay in them, but that only creates even more liquidity near the price, which naturally acts like a magnet.
Some large sellers also fully closed their shorts, pushing the price today into the $72K region.
The rally feeds on itself until excess leverage is cleaned out.
That’s why the move was so violent and fast. It wasn’t just spontaneous demand. It was a forced dismantling of short positions that were concentrated too heavily.
There was a very large volume of shorts positioned against Bitcoin, and relentlessly I warned about them—that they would be punished, and that leveraged sellers would be the immediate fuel for the rise.
Squeezes of this size don’t define a trend on their own, but they clear the sell side and make room for the price to test higher levels with less short-term resistance. The next step now is to see whether the market can hold this region with real demand, and not just forced liquidations.
It would be funny if the $58K/ $60K ended up being the definitive bottom kkkkk. Because I kept warning that region wasn’t just another support. kkkk.
Time will tell!
In just a few hours, more than $311 million in short positions were liquidated on Binance alone. In the overall market, the volume of forced shorts surpassed $1.4 billion yesterday, but what matters is today’s move.
The price surged strongly yesterday, and the SELL positions began to be liquidated; however, not everyone was liquidated yesterday… since many added more money to their positions to try to stay in them, but that only creates even more liquidity near the price, which naturally acts like a magnet.
Some large sellers also fully closed their shorts, pushing the price today into the $72K region.
The rally feeds on itself until excess leverage is cleaned out.
That’s why the move was so violent and fast. It wasn’t just spontaneous demand. It was a forced dismantling of short positions that were concentrated too heavily.
There was a very large volume of shorts positioned against Bitcoin, and relentlessly I warned about them—that they would be punished, and that leveraged sellers would be the immediate fuel for the rise.
Squeezes of this size don’t define a trend on their own, but they clear the sell side and make room for the price to test higher levels with less short-term resistance. The next step now is to see whether the market can hold this region with real demand, and not just forced liquidations.
It would be funny if the $58K/ $60K ended up being the definitive bottom kkkkk. Because I kept warning that region wasn’t just another support. kkkk.
Time will tell!