There are currently long positions worth $500 million at $BTC , all trapped around 82K.
These are the longs who entered during the pullback to support and held on all the way without selling.
This level is about 10% above the current price, which means that to rally straight back to the previous high, the market first has to absorb this large pocket of underwater positions.
To regain a bullish rhythm, the first step is to stabilize within the range, stop the decline and find a floor, then gradually move toward this key level.
When the price approaches the cost basis of these trapped positions, those longs will have a chance to break even or exit at a small loss. This would ease the selling pressure from support below the current range, making another retest of the range low more manageable.
The ideal sequence is: hold the range low → absorb liquidity from trapped positions → form a higher low and squeeze the shorts → reclaim 80K, the former support for the range.
In this kind of market, this is exactly the sequence we’re hoping to see play out.
If this cycle completes and 82K turns back into support, the selling-pressure dynamic from trapped positions will reverse, shifting the pressure back onto the shorts.
These are the longs who entered during the pullback to support and held on all the way without selling.
This level is about 10% above the current price, which means that to rally straight back to the previous high, the market first has to absorb this large pocket of underwater positions.
To regain a bullish rhythm, the first step is to stabilize within the range, stop the decline and find a floor, then gradually move toward this key level.
When the price approaches the cost basis of these trapped positions, those longs will have a chance to break even or exit at a small loss. This would ease the selling pressure from support below the current range, making another retest of the range low more manageable.
The ideal sequence is: hold the range low → absorb liquidity from trapped positions → form a higher low and squeeze the shorts → reclaim 80K, the former support for the range.
In this kind of market, this is exactly the sequence we’re hoping to see play out.
If this cycle completes and 82K turns back into support, the selling-pressure dynamic from trapped positions will reverse, shifting the pressure back onto the shorts.
