Trader A opens a long position at $108,000 with a liquidation price at $106,000.
Trader B opens a short position at $108,000 with a liquidation price at $110,000.
Now, suppose the market is in a bullish trend, meaning the price is expected to rise. As the price climbs and hits $108,800, Trader A (the long position) decides to take profit and exit.
At this point:
The price continues to rise toward $110,000.
The reason is that there’s little selling pressure below, since buyers are in control and bears (shorts) are underwater.
There’s also minimal resistance above, because it’s not the bulls that are under pressure, but the bears.
Here's the core idea:
The only real “resistance” to price moving higher comes when short positions get liquidated or hit stop-losses.
When that happens, the forced market buy orders (from short liquidations) push the price up further.
Part of the liquidation loss goes to the long position holders (e.g., those who stayed in or entered at the right time), while the rest is taken by the exchange as fees or insurance fund replenishment.
So in your case:
You exited your long at $108,800, but the price kept climbing.
That’s because shorts were still being squeezed, and their liquidation orders helped drive the price up to $110,000 or more.
Conclusion (your core insight):
In a bullish trend, entering short positions is extremely risky because the momentum is against you, and your stop-losses or liquidation levels may get hit before any downside movement happens. You’ll get “buried” trying to short into strength.