The truth behind the BTC surge is revealed! Short positions liquidated, sparking the market, while bulls choose to stand by?

This wave of BTC trading has completed the liquidation of short positions below 101400, meaning that the short positions in this area have been digested, and the short positions above 103000 have almost disappeared.

Although there were expectations for a market rise, the strength of this surge completely exceeded expectations. Without any major positive news, the price still rose strongly, which is truly surprising.

There are two main reasons behind this:

First, shorts continuously added positions at high levels.

Many bearish funds continued to short during the price rise, causing passive liquidation pressure, which instead pushed the price upwards.

Second, bulls chose to stand by.

Aside from a concentrated entry of bulls near 92800, during other periods the bullish sentiment was cautious, and the overall buying willingness was weak.

This situation led to shorts driving up the price, while bulls did not effectively resist, ultimately resulting in the rise.

Moving forward, the direction of the market will depend on two key questions:

Do shorts still have confidence to continue shorting?

Will bulls step in at high levels?

If shorts retreat and bulls do not enter, the market may enter a new equilibrium phase.