This surge in a stealthy manner has only one uncomfortable aspect: during the rapid ascent in the small scale, the spot premium did not increase significantly, but only started to rise after a pullback and fluctuation once new highs were broken.
Although the shorts above 110k have officially been liquidated, my feeling is that everyone is re-establishing short positions! Haha
The theoretical logic for shorting is there:
1: In principle, the technical pattern also conforms to a double top formation and liquidity grab behavior.
2: From the perspective of liquidity, as long as it is given some time, it will gradually gather! In the short term, it only needs to experience a period of fluctuating pullback to attract more and more shorts into the market.
However, I personally feel that if we follow this Siamese reasoning, once the spot premium starts to grow, it will increase the leverage for bulls, and the re-entering short positions will become the target for a new round of liquidation.
The best path at this stage is to provide a fluctuation adjustment under the current supply zone pressure, allowing for the turnover and catch-up of altcoins, and then wash out the shorts upward...
In simple terms, theory tells me there are opportunities for vacancies, but my intuition tells me that bulls should hold on first and just do a risk-free reduction…
