Two Futures Market Long-Short Game Upgrade

I. Short Squeeze Just Ended, Market Still Has Upward Momentum

From the perspective of liquidation density, the 3500–3550 range has gathered a large number of highly leveraged short positions, especially those with 25x and 50x leverage. The shorts in this price range were quickly cleaned out during the recent price surge, directly pushing the price above to the current level.

Liquidation itself is a passive trading behavior; once triggered, it often becomes a source of momentum for the market to continue moving. Currently, this wave of liquidation has not yet been completely finished, and the market has room for continuation.

II. 3580–3620 is the Next Short Trigger Zone

Further observation shows that there are still a large number of highly leveraged short positions waiting to be liquidated in the 3580–3620 range. As long as the price can continue to approach this area, it cannot be ruled out that a new round of “squeeze acceleration” will occur, creating further upward price momentum.

At this stage, the initiative in the market is in the hands of the bulls, but whether it can break through completely requires attention to trading strength and whether new funds are entering the market.

III. Strong Support Below

From the liquidation chart, it can be seen that the number of short position liquidations in the area below 3450 has significantly decreased, indicating that previous short positions have been largely processed.

This means that the current market's correction space is relatively limited, with the 3500–3450 range forming a short-term support zone. Only when the market effectively breaks below this range with volume can it potentially enter a deeper adjustment phase.

IV. 3700 and Above is a Potential Risk Area

It is worth noting that in the 3700–3850 range, a certain amount of long high-leverage positions have begun to appear. If the market continues to rise to this level, it may welcome a phase of profit-taking or a pullback after the price peaks.

At this time, operations need to be more flexible to avoid chasing high and stepping on the edge of the long squeeze.

V. Current Strategy Suggestion: Neutral to Bullish

If the price continues to push towards 3580–3620, pay attention to the momentum release rhythm; if the breakthrough is effective, then go long accordingly;

If the market short-term retraces to the 3500–3450 range, observe whether it forms support before considering a buy on the dip;

Be cautious of potential pullbacks or market rotation fluctuations above 3700.

The current market has entered a critical phase of rhythm switching. Controlling risk while maintaining flexible and rational trading is the core logic to navigate through the long-short fluctuations.