Bitcoin breaks through $100,000, how long will this rally last? Short-seller pressure is starting to increase
Last night, Bitcoin officially broke the $100,000 mark, and the market can be described as very strong, breaking several key levels in a short period, bringing considerable impact to many bearish investors.
If you remember, you might find this trend somewhat familiar — it's similar to the 'Trump rally' after last year's U.S. election. At that time, Bitcoin also saw a significant surge in a short period, and market sentiment quickly shifted from cautious to optimistic.
Where does the push for this rally come from?
From the current market feedback, there are several core factors worth noting:
The market generally expects that if Trump is re-elected, it will promote a more lenient regulatory environment for cryptocurrencies;
Leverage funds are flowing back in, with over $230 million in short positions liquidated across the network in the past 12 hours;
Bullish sentiment is strengthening, with open contract volume quickly rising to over $27 billion.
Additionally, some analyses suggest that large funds may take advantage of the psychological barrier of $100,000 to create a short squeeze, further increasing market volatility.
Note that current market volatility is escalating. Although the trend is optimistic, it is also important to be aware of the increasing risks:
Daily volatility is widening, with a daily price fluctuation of $10,000 becoming the norm;
Geopolitical tensions and U.S. economic data may still bring uncertainty, especially regarding the recent India-Pakistan situation and Federal Reserve policy direction;
Some large holders ('whales') have already started withdrawing funds, possibly preparing for a subsequent market shift.
How to respond moving forward?
If you currently hold a heavy position, it is advisable to focus on the following points:
Control your leverage ratio and try to avoid frequent trading in high-volatility markets;
If you do not have a clear directional judgment, you can choose to wait and see for confirmation signals;
Tomorrow's Federal Reserve data may be a key point for short-term trends.
Finally, a reminder: although bulls currently dominate, there is still a risk of market pullback. Try to remain calm while trading, especially in a phase where emotions can easily be amplified.