Bitcoin didn’t rise because everyone suddenly became optimistic.
Sometimes the rally starts in a completely different way:
Sellers become the fuel for the rise.
During today’s upswing in $BTC, above 85,000, more than $648 million worth of short positions were liquidated in the crypto market within 24 hours. At the same time, strong inflows returned to spot Bitcoin funds, with around $433 million in inflows on September 18.
And here’s where things get interesting:
Someone sells because they expect the price to fall → the price rises → their position is force-closed → a sell close turns into a buy → the price rises even more → other sellers run into the same problem.
That’s how fear of a drop can turn into fuel for a rally.
But there’s a more important question than: Where will BTC go?
Is there enough real demand to keep the rally going after selling pressure is exhausted?
Because testing the 85–86 thousand dollar range may be more important than the number itself; Bitfinex considers $85,000 the first major test of the current move.
The market sometimes doesn’t climb because buyers are stronger alone… but because sellers no longer have anywhere to escape to.
What we’re seeing now— is it the start of a new move, or is a large part of it just a short squeeze?
Sometimes the rally starts in a completely different way:
Sellers become the fuel for the rise.
During today’s upswing in $BTC, above 85,000, more than $648 million worth of short positions were liquidated in the crypto market within 24 hours. At the same time, strong inflows returned to spot Bitcoin funds, with around $433 million in inflows on September 18.
And here’s where things get interesting:
Someone sells because they expect the price to fall → the price rises → their position is force-closed → a sell close turns into a buy → the price rises even more → other sellers run into the same problem.
That’s how fear of a drop can turn into fuel for a rally.
But there’s a more important question than: Where will BTC go?
Is there enough real demand to keep the rally going after selling pressure is exhausted?
Because testing the 85–86 thousand dollar range may be more important than the number itself; Bitfinex considers $85,000 the first major test of the current move.
The market sometimes doesn’t climb because buyers are stronger alone… but because sellers no longer have anywhere to escape to.
What we’re seeing now— is it the start of a new move, or is a large part of it just a short squeeze?