Santa Claus is setting off! The big pancake shorts are being 'smashed', is the bull market coming back?
Brothers, the Christmas market might really be coming! According to the latest report from data analysis agency CryptoQuant, a key signal has emerged in the Bitcoin market: the shorts in the futures market are being massively liquidated.
Previously, a bunch of people bet that $BTC would drop (shorting), but now the price hasn’t moved as they expected, and instead shows an upward momentum. These people can’t hold on any longer and have to buy big pancakes to cover their short positions. This buying creates a 'mechanical buying force', effectively injecting a surge of upward momentum into the market.
Analysts call this state 'bull market neutral', meaning the market structure has shifted toward bulls (buyers), with positive bullish expectations, but the overall market sentiment hasn't reached a frenzy, which is actually healthier. In other words, the engine for rising has started, but it hasn't reached the point of overheating and racing.
In my opinion, this wave of 'short covering' is very worth paying attention to. This often serves as an accelerator for a trending market. Historical experience shows that when shorts are forced to collectively cover, it can easily trigger a rapid rise. Now, coinciding with the year-end 'Christmas window period', there may be some seasonal changes in liquidity and sentiment.
However, the current market structure is clearly more favorable for bulls. Shorts are paving the way for upward movement with their stop-loss orders. Next, we’ll see how many surprises this wave of 'Christmas market' can bring. Buckle up, the market might be more exciting than expected.
The market has just gone through a bloodbath, are you trapped? Not sure when to bottom fish? Confused and helpless about what to do? I will prepare for a big wave in the upcoming market; this time, hitting it big will definitely yield a full pot of profits. If you want to witness this, come to the Binance chat room.
