Article:
The market is currently at a very interesting turning point. If you are looking at charts, stop and take a look at this liquidation data. This data clearly indicates that the market's next big move could be to the upside.
The math here is very simple:
1. The Imbalance: Going up is easy
What do market makers have to do to hit a $1.1 billion liquidation?
Downside: The price will have to drop to $2,000 for long positions to clear. (Difficult task)
Upside: The price only needs to increase by $770 and short sellers' $1.1 billion will clear. (Easy task)
2. What does this mean? (Short Squeeze Alert)
The market always moves along the "Path of Least Resistance."
It's currently easier for the market to go up and trap shorts.
Short Squeeze: As soon as the price increases by $770, shorts will cover their positions, leading to a big and fast rally (Pump).
3. Which coins to watch?
The direct impact of this Bitcoin move will be on high-volatility coins.
Heavy movement can be seen in tokens like $CVX and $WLFI as liquidity will also shift there.
Trading advice:
Currently, shorting is like playing with fire. The risk is to the upside. Buying on dips may be a safer strategy.