$BTC suddenly reversed and surged hot to 70K, but this is most likely just a fake recovery.
The main force driving it is probably shorts closing their positions and exchanges engineering a short squeeze when the short ratio got too high, as I mentioned yesterday.
Looking at the Liquidation Map, what’s truly scary is still lurking behind — there are tens of billions of USD worth of positions that would get liquidated if $BTC drops back to the 60K level again.
Especially, there’s a paradox right now: $BTC is recovering but volume has dropped very sharply — a bad signal when there’s no fresh spot money coming in.
Personally, I’ll stay on the sidelines and observe more.
The main force driving it is probably shorts closing their positions and exchanges engineering a short squeeze when the short ratio got too high, as I mentioned yesterday.
Looking at the Liquidation Map, what’s truly scary is still lurking behind — there are tens of billions of USD worth of positions that would get liquidated if $BTC drops back to the 60K level again.
Especially, there’s a paradox right now: $BTC is recovering but volume has dropped very sharply — a bad signal when there’s no fresh spot money coming in.
Personally, I’ll stay on the sidelines and observe more.