【Liquidity Analysis】Short liquidity shows what is called "endless";

In the past 7 days, as the price gradually stabilized and rebounded, we saw that short liquidity reappeared quickly after each liquidation. I seemed to see traders who were shorting mechanically repeating the cycle of "shorting" - "stop loss at local highs" - "stop loss" - "shorting again";

Short traders looked at the technical analysis, the macro analysis, and the trends of US stocks and gold, and believed that the price rebound should be in place, but the reality is that the price continued to rise a small step after the shock, causing his short position to lose again and again, which was painful;

As everyone knows, the main reason for the continuous shock and rise in prices is themselves! Due to the overall shrinking volume of spot transactions, the dominance of the market has returned to futures. Where there is a lot of liquidity, the price will go there, and the biggest enemy of the shorts happens to be other shorts who short with him;

I wonder if there are friends who have also suffered losses from shorting? If so, do you plan to continue to stick to it?