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BTC Short Liquidation at $118.4K — Short-Covering Signal, Watch for Follow-Through

I observed a Bitcoin short liquidation of $78,900 executed at $118,422.90. Short sellers were stopped out at that level, producing a short-covering impulse.

I view this as a modest bullish signal but not definitive on its own. I'll monitor for follow-through above nearby resistance or larger liquidations before increasing exposure.

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Analysis

The liquidation shows short-covering pressure at ~118.4K, which can push price higher short-term. However the notional ($78.9K) is relatively small versus market depth, so this alone is weak confirmat...

Recommendation

Watch price action and confirm momentum before acting. Consider buying on confirmed breakout or on weakness with defined risk rather than chasing this single liquidation event.

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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