Now the entire network is at a high position, how to proceed next? Will the situation of pulling shorts still appear? What are the conditions?
The entire network at a high position = the real market is about to differentiate, rather than immediately reverse
BTC/ETH are maintaining high-level fluctuations on daily and 4-hour charts, with K-lines converging;
Shorts are waiting for a "reversal signal," but the main force is not letting go;
Bulls are afraid to chase, fearing "standing guard at high positions";
This is the most typical stage of "short squeeze not completed + inducing shorts to accumulate strength."
The next possible three scenarios (common tactics of the main force)
1: After washing the high position, create a new high (controlled by the main force)
Fluctuations + spike down (wash away floating longs + induce shorts)
Then surge and break through, squeezing and harvesting shorts
The most typical scenario of "bears think it’s a reversal, but it’s actually the main force getting in stage"
At this time, opening shorts randomly is the most dangerous moment.
2: Quickly pull up to induce a peak and then smash down (double kill for longs and shorts)
Violent surge creating FOMO (like a 300U bullish candle for ETH)
Retail investors chase highs, shorts cut positions
Then a volume drop and retreat, the main force reverses to short, creating panic selling
This is the opportunity to pull shorts, on the premise that you don’t stand on the wrong side too early.
3: Directly sideways + time to exchange for space, funds flow into other coins
The main force does not sell high positions but allows hotspots to shift (sector rotation)
For example, BTC/ETH stay flat, while LDO, OP, SOL suddenly surge
Retail investors are confused, but controlling funds have already changed direction
If you only focus on mainstream coins at this time, you will miss the entire rhythm.
The real premise for the appearance of the "pulling shorts situation" is:
Pulling shorts = reversal crash, must meet the following
Top signal resonance Daily level volume stagnation
Extreme sentiment + retail investors start to chase longs in large numbers
Controlling main force intentionally smashing down: volume-price imbalance + successful inducement of shorts
K-line suddenly large bearish candle smashing through key support
Main force position completes adjustment, reverse absorption
Breaking below the trend line without rebounding, but rather continuing to kill with increased volume
Right now, it’s just the fluctuation washing stage, reversal is far from here.
Suggestion:
Do not short heavily, wait for stagnation & volume reduction stage to signal before taking action
Focus: If ETH appears to surge around 3600 with increased volume + weak bullish candle the next day = peak-inducing signal
Control positions from the start, stop-loss must be set, do not all-in to chase the peak
The ETH shorts have not died, but the account is dying.
Those who hold on without stop-loss,
Now is not trading, it’s waiting for liquidation.
I do not predict tops, I only follow the rhythm.
