A short squeeze occurs when many traders open short positions (sell) with the expectation that prices will fall. However, if prices start to rise quickly and strongly, short sellers will be forced to close their positions (buy to close) to avoid significant losses.
The closing of these short positions adds buying pressure, which accelerates the price increase. This is what is referred to as a squeeze — short sellers are "squeezed" by the unexpected price rise.
What is the relationship with Liquidation?
Liquidation occurs when traders with high leverage do not have enough margin to maintain their positions as the market moves against them.
If there are many high-leverage short positions with liquidations above the current price (for example, BTC at $92,000), then if the price starts to rise towards that level, liquidations will forcibly buy the asset.
This creates automatic mass buying → pushing prices even higher → domino effect → short squeeze.
And I have lost nearly $1000 because I took a short position at #MarketRebound yesterday.
#SaylorBTCPurchase the wave of BTC and ETH rise due to this purchase has indeed become a bullish sign. but we forget to read this change. #MarketRebound
#MarketRebound installing short during a bullish wave is a nightmare, strengthen your mentality. perhaps all capital will be exhausted. but there is still hope that the market will go down.
Market Crash!! Withdraw all your money from the market guys. Wait for the storm to subside and get back in. Because it is currently unpredictable. #tarifwar #ustarrif #CryptoTariffDrop
💰 BNB has perfectly hit our predicted targets of $630 & $635, surging to a 24H high of $637.65! This breakout was a textbook bullish move, rewarding those who followed with massive profits! 📈💥
Retest at $625-$628? A golden entry opportunity before the next leg up! 📊
Next targets: $645-$650 🚀
🏆 BIG Congratulations to Everyone Who Followed the Call! Another solid prediction delivered—this is how we win! More big moves are coming, so stay ready!
💬 Who’s riding this BNB wave? Drop your W’s below! 👇🔥 #VoteToListOnBinance
$XRP /USDT is showing signs of weakness after rejecting the $2.1920 resistance level. The failure to establish higher highs at this key zone indicates growing selling pressure. A breakdown below $2.15 could accelerate downside momentum toward the next major support.
Trade Setup: Entry: $2.19 Take Profit (TP): $2.02 Stop Loss (SL): $2.27
Watch for confirmation of a breakdown below $2.15 for increased bearish momentum. A close above $2.27 would invalidate the short setup.
📉 Current Price: $0.00001276 PEPE is in a downtrend, but oversold conditions hint at a potential reversal. Let’s dive into the technicals to uncover trade opportunities!
🔑 Key Technical Levels:
Resistance Levels:
$0.00001300 (Immediate Breakout Zone)
$0.00001337 (24h High)
$0.00001380 (Critical Resistance)
Support Levels:
$0.00001250 (Key Support Zone)
$0.00001210 (Last Defense Line)
📊 Trade Signal:
Momentum: Currently bearish, but RSI suggests oversold conditions on lower timeframes, signaling a potential bounce.
Recommendation: Watch for support at $0.00001250 or a breakout above $0.00001300.
🚦 Trade Setup:
🎯 Entry Point:
Enter near $0.00001250 if support holds.
Alternatively, take a breakout trade above $0.00001300.
🎯 Targets:
Target 1: $0.00001300
Target 2: $0.00001337
Target 3: $0.00001380
📉 Stop-Loss: Place a stop-loss below $0.00001210 to limit downside risks.
📈 Momentum Indicators:
RSI: Near oversold (~30), indicating recovery potential.
MACD: Bearish but nearing a crossover—wait for confirmation.
📌 Trading Strategy:
Bullish Bounce: If $0.00001250 holds, expect a recovery toward $0.00001337.
Bearish Breakdown: A drop below $0.00001210 could lead to further downside toward $0.00001180.
Halo, Binance Square! my name's J.B. Martien. I am a crypto trader who has been active in the cryptocurrency world for the last three years. I have experience in performing technical and fundamental analysis to identify profitable trading opportunities. Apart from that, I also constantly monitor the latest news and trends in the crypto market to make better decisions in trading.
I am eager to share my knowledge and experiences with others and get involved in the community to continue learning and growing in this ever-dynamic world.