buy on weakness

Bitcoin Short Liquidation Signals Momentum — Wait for a Pullback

I watched a BTC/USDC short get liquidated — average entry ~123,706.1 with a total size of about $111,335. That liquidation likely reflects a short squeeze and upward momentum in Bitcoin price.

I’m not surprised by the outcome; forced liquidations can accelerate rallies. I’d avoid chasing this move and prefer to wait for a clear pullback or consolidation before adding exposure.

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Analysis

The liquidation of a sizable short position indicates recent upward pressure and a possible short squeeze, which can extend rallies in the near term but also increases short-term volatility and the ri...

Recommendation

Do not chase the rally. Favor wait-and-buy-on-weakness: look for a retracement or consolidation before entering, size positions conservatively, and use stops to manage risk.

Disclaimer

The Analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.

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