The truth behind price fluctuations is actually hidden in human nature.
There are always people asking why prices rise and fall? Talking about long and short battles, open interest... it's all nonsense! The essence of the market is simple: someone is in a hurry.
Want to short? Someone has to take your long position! Want to go long? Someone has to sell to you! Every transaction is a process where both buyers and sellers exchange insults. The countless orders posted on the exchange (long/short sizes) are just spectators — what truly drives the price are those who can't wait.
What's the rush?
Some people are FOMOing, directly sweeping away sell orders and rushing up.
Some are scared, smashing through buy orders and cutting losses to run away.
No matter how thick the orders are, they can't withstand an emotional explosion. Big orders on top? A single panic sell can break through! Bottom support orders? A single news-driven FOMO can directly blow it up!
Remember: prices are made with real money, not with wishful thinking from pending orders. Those who say "there are more short positions than long positions so it must drop" have never experienced the beating of a short squeeze. The market specializes in treating all kinds of disobedience; when emotions are in place, even a coffin lid can be lifted off you.
(The market is always telling you: the anxious ones buy first.)
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