Bitcoin is moving now near $86,100, and as the price rises alongside a drop in Open Interest, the main driver of this current upmove isn’t the inflow of new futures contract liquidity, but rather the forced closing and liquidation of short positions (Short Squeeze / Short Covering).
That’s why I’m watching for the continuation of the move toward $87,200–$87,500, where large liquidity for short contracts is concentrated.
After this liquidity is pulled, I’ll watch for the price to return toward $82,776 and then $82,000 to liquidate the accumulated liquidity at the bottom.
That’s why I’m watching for the continuation of the move toward $87,200–$87,500, where large liquidity for short contracts is concentrated.
After this liquidity is pulled, I’ll watch for the price to return toward $82,776 and then $82,000 to liquidate the accumulated liquidity at the bottom.
