BTC is turning the most crowded short area into fuel for a rally.
In a BlockBeats message dated September 21, Glassnode stated that BTC, as expected, accelerated its breakout through a densely positioned short-liquidation zone. Over the past several months, the $82,000 to $86,000 range accumulated a large number of short positions, and the earlier pullback from that range had been relatively shallow. Now, those short positions are becoming a driver for the upswing, because short traders need to cover their BTC.
The appeal of this type of move is straightforward: on one side, the demand for covering continues to push prices higher; on the other, after passive buy orders fade, volatility may also quickly expand. If the volume at higher levels can hold up, the squeeze is more likely to continue; if the market can’t absorb it, the decline may come just as fast.
Are you more focused on BTC continuing to squeeze shorts, or on a rapid pullback after the covering ends?
Figure 1: BTC breaks through the short liquidations zone · Source page partial screenshot
Image source: https://www.theblockbeats.info/flash/368255
In a BlockBeats message dated September 21, Glassnode stated that BTC, as expected, accelerated its breakout through a densely positioned short-liquidation zone. Over the past several months, the $82,000 to $86,000 range accumulated a large number of short positions, and the earlier pullback from that range had been relatively shallow. Now, those short positions are becoming a driver for the upswing, because short traders need to cover their BTC.
The appeal of this type of move is straightforward: on one side, the demand for covering continues to push prices higher; on the other, after passive buy orders fade, volatility may also quickly expand. If the volume at higher levels can hold up, the squeeze is more likely to continue; if the market can’t absorb it, the decline may come just as fast.
Are you more focused on BTC continuing to squeeze shorts, or on a rapid pullback after the covering ends?
Figure 1: BTC breaks through the short liquidations zone · Source page partial screenshot
Image source: https://www.theblockbeats.info/flash/368255
