Why is nobody talking about the real test that comes after a short squeeze?
Most traders still get wrecked chasing the first violent pump only to watch it reverse hard once covering is done. They lose money on FOMO entries because they cannot tell mechanical buying from actual demand.
The squeeze explains part of the speed. That is why $BTC can rip 15 percent in hours when funding is deeply negative and liquidations cascade. But what happens after the shorts are gone tells us more about the strength of the rally. If $ETH holds its breakout and volume stays elevated instead of drying up, real buyers are in control. If it fades, the move was just covering and you should stay out.
I wait for that confirmation then look for a pullback that holds. That is when I add size, watching $SOL for follow-through so I know the whole market is participating rather than one isolated squeeze.
Where do you think this goes from here once the shorts are flushed?
#Bitcoin #CryptoTrading #MarketStructure
Most traders still get wrecked chasing the first violent pump only to watch it reverse hard once covering is done. They lose money on FOMO entries because they cannot tell mechanical buying from actual demand.
The squeeze explains part of the speed. That is why $BTC can rip 15 percent in hours when funding is deeply negative and liquidations cascade. But what happens after the shorts are gone tells us more about the strength of the rally. If $ETH holds its breakout and volume stays elevated instead of drying up, real buyers are in control. If it fades, the move was just covering and you should stay out.
I wait for that confirmation then look for a pullback that holds. That is when I add size, watching $SOL for follow-through so I know the whole market is participating rather than one isolated squeeze.
Where do you think this goes from here once the shorts are flushed?
#Bitcoin #CryptoTrading #MarketStructure
