The second truth: That big bullish candlestick wiped out at least half of the short positions.
But just having a “story” can’t explain such a big rise.
Look up the data from September 1st.
ARB surged 30% in one day, futures trading volume was $8.14 million, a 700% spike. Open interest surged 62% to 157 million. Liquidation data: $3.15 million worth of positions were forcibly closed, of which $2.2 million were shorts.
To translate: the shorts got crushed. Their forced buy-ins were the main fuel pushing the price up.
Why were there so many shorts?
Because ARB had been falling for two years. From 2.4 down to 0.07, a 97% drop. Anyone shorting ARB above 0.10 had been making money for the past few months. Shorts developed muscle memory: ARB is trash, if it rises, short it. $ETH $BTC $ARB
But just having a “story” can’t explain such a big rise.
Look up the data from September 1st.
ARB surged 30% in one day, futures trading volume was $8.14 million, a 700% spike. Open interest surged 62% to 157 million. Liquidation data: $3.15 million worth of positions were forcibly closed, of which $2.2 million were shorts.
To translate: the shorts got crushed. Their forced buy-ins were the main fuel pushing the price up.
Why were there so many shorts?
Because ARB had been falling for two years. From 2.4 down to 0.07, a 97% drop. Anyone shorting ARB above 0.10 had been making money for the past few months. Shorts developed muscle memory: ARB is trash, if it rises, short it. $ETH $BTC $ARB