Bitcoin Short Liquidation, Is the Bull Market About to Restart?
After BTC surged to $108,786 and then pulled back to $74,000, it seems like the decline is fierce, but in reality, it's just a washout — on-chain data indicates that a real bull market may be brewing.
On-chain signals clearly indicate: On May 8, Binance experienced the largest short liquidation since April, with over $31 million in short positions wiped out in one go! What does this mean? It's a typical short squeeze combined with buying pressure recovery, marking the main force beginning to 'cleanly' take over the market.
More importantly, the current financing rate for BTC is still low, indicating that the market is not overheated and sentiment remains cautious — this is the ideal environment for the main force to push the price up. There are no retail investors chasing the price, only passive liquidations of short positions.
Once the remaining shorts are forced to close their positions, Bitcoin is expected to usher in a new round of increases, potentially even challenging historical highs.
