💡 Understanding BTC Liquidation Logic in a Bull Market
Let me break something down for you with a simple example from the Bitcoin ($BTC) market — one that many traders overlook when trying to catch moves in a bullish trend.
Imagine this scenario:
Trader A goes long at $108,000
Trader B goes short at $108,000
The liquidation price for the long is $106,000
The liquidation price for the short is $110,000
Now, let’s say the market is trending up — it’s a bullish setup.
When the price rises to $108,800, Trader A (the long position) decides to exit and take profit. From here, the price keeps going up, moving closer to $110,000.
Why?
Because in this type of move, there's no real resistance above — not because buyers are piling in with huge new orders, but because the bears are under pressure. As the price climbs toward the short traders' liquidation zone, their positions start to get liquidated automatically. When that happens, part of their funds go to those who were long, and part of it goes to the exchange.
There’s no actual "buying force" needed to push the price up — the liquidations themselves become the fuel.$BTC
In this particular trade, I exited around $108,800 — but the price kept rising afterward. Why? Because the bears were getting squeezed out one by one, and their positions helped push the price even higher.
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🧠 The Takeaway
In a strong bullish trend, trying to short over and over again is like standing in front of a freight train. Even if you have a good thesis, you can get buried before the market ever reaches your ideal target.
So next time you’re thinking about shorting in a bullish market, ask yourself — are you trading the trend, or are you trying to fight it?
#BinanceAlphaAlert #BinanceHODLerSOPH
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