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The Bitcoin (BTC) market, after experiencing a round of falls, suddenly staged a fierce "squeeze" against short positions. Data shows that after hitting a low, the BTC price rapidly pumped, currently stabilizing around 122,000 USD. This sudden rise triggered a severe "short squeeze" in the derivation market, leading to massive funds being forced liquidated.
Market Outlook: Has the Trend Reversed?
By combining market analysis and liquidation data, we can make judgments about the future market. The short-term bullish signals are clear: large-scale short positions liquidation has eliminated some of the short-selling power in the market, reducing the direct selling pressure on price increases.
In the short term, market sentiment and technical patterns lean towards bullish. The long-term trend is still to be confirmed: although short positions have suffered significant losses, a single "short squeeze" is not enough to fully confirm a reversal of the long-term downtrend. As indicated by the MACD indicator, the market needs time to consolidate and confirm the validity of this rebound.
Beware of high volatility risks: After a dramatic "short squeeze" market, it often enters a period of high volatility. In a situation where the trend is not yet clear, both chasing highs and bottom fishing carry significant risks. #BTC重返12万# #ETH突破4300#