In a bullish market, short positions face constant risk. Imagine one trader goes long at $108,000 and another goes short at the same level. The long exits at $108,800, but the price keeps rising — not because of buying pressure, but because shorts are being liquidated.
As the price nears the short’s liquidation at $110,000, forced buying from those liquidations pushes the price higher. This creates a chain reaction: short positions fuel the uptrend with no real resistance above.
Bottom line: In a bullish trend, shorting is dangerous. Most shorts get wiped out before hitting their targets.