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$BTC – My Trading Perspective
$BTC Let me explain this with a simple example from my own observation. Imagine two traders: one goes long with a position at $108,000, and the other goes short at the same price — $108,000. The liquidation price for the long position is $106,000, and for the short position, it’s $110,000.
Now, let’s assume the market is bullish — the overall trend is clearly upward. As the price climbs and reaches around $108,800, the trader holding the long position decides to exit. After this point, the price doesn't just stop — it keeps moving toward $110,000. Why? Because the bulls are taking profits, and there are no strong opposing sell orders below to slow the movement.
It’s important to understand that the upward movement isn’t necessarily driven by fresh buying pressure — rather, it’s the liquidation of short positions that fuels this. When the price gets close to the liquidation or stop-loss levels of the bears, their positions start getting closed forcefully. Their funds, in part, go to those who held the long positions (and exited earlier), while the remaining share goes to the exchange.
So, what happened here is: I exited my long position early at $108,800, but the price still pushed higher because of the natural momentum created by liquidating bearish positions. This is a key insight: in a bullish market, if you keep trying to short, your positions will likely get wiped out before the market even comes close to your target.
That’s the nature of trading in a trending market — going against the trend, especially during strong bullish momentum, often leads to loss unless you're incredibly precise.
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