Before the current growth began, we wrote many times that#BTCgrowth would begin after the breakout of short liquidity zones.
As a result, to this day the main driver for growth is the liquidation of short sellers!
In just 1 week of growth, a total of $1.8 billion in short positions have already been liquidated🔪🐻
The short liquidation feast on the crypto market continues.
And despite the large accumulation of long positions, you should not open shorts (there will be a short-term correction) ❌
In the current market, trading should only be long!
The strategy should be set up to buy out any impulsive market dips.
Don't relax, corrections will definitely be within the trend, so longs with high shoulders are also under great threat.
🕯 How do liquidations affect the market?
As an example, let's look at the HMSTR hamster coin, which very well illustrates the principle of position liquidation (see picture):
The coin has only been falling since its listing, and as it fell, traders opened shorts, thereby accumulating short liquidity above the trend line.
As a result, all this liquidity was collected literally in one candle, the coin $HMSTR shot up by +140% 📈
Of course, such growth is only possible due to liquidations, which were record-breaking in the entire history of this coin!
📝 The liquidation of the position itself occurs essentially by a market order.
When the coin reaches the liquidation price, your position is closed at market, i.e. it hits the glass (the glass may be half empty).
As a result, we see such a huge upward impulse, which has collected a lot of liquidity.
There are many similar coins on the market now that have not yet started to collect short liquidity.
🤟 Did you like the review or want to better understand cryptocurrencies and technical analysis?
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