I am seeing a ton of posts saying that "this is just the short squeeze, it will crash or run out of fuel once the shorts are liquidated", but I have a grid trading bot running during this short squeeze and have literally been watch the charts for a good 50% of the time over the past 3 days.
When a liquidation event is happening it's obvious. They tend to happen right when Bitcoin reaches "psychological levels" of price (like multiples of $1,000, $500, $250, etc.), and if you're watching the candles (I watched 1-minute candles for most of this time) you will see a sudden spike in Bitcoin being purchased. The candle will be a lot taller than the ones around it.
The price movement starts going crazy, rising and falling but generally rising, until it reaches an equilibrium. That's the part where people are wrong.
They claim that once the short squeeze is over the price will plummet, but short fuel ran out the first day, the second day, and is mostly gone right now. But the price kept rising after the majority of the liquidations occurred both of the past two days. In fact yesterday was wild to watch, because the initial jump to $79,500 was followed by a huge fall to around $66,500 at the lowest if I remember correctly.
But the price withstood that brutal drop and started slowly making its way back up. It told me that there is actual interest in buying at these prices, and not just a little bit of interest.
I was shocked a couple of hours later to see *more* evidence of short liquidation as the price came back to levels that just had liquidations occur. It made me wonder how stupid these big shorting whales are to be placing highly leveraged short positions on Bitcoin after so much blood for them the past day and up until that point as well.
These are the indicators I've been watching as they are most relevant to grid trading.
Now I'm not a millionaire like these whales, and clearly they're doing something right to have those millions. But I can't wrap my mind around the idea that they're placing shorts in areas that were just liquidated without even waiting a little to see if it's safe, and then LEAVING THEM UNATTENDED. That's the wild part. If I had $250 million riding on a 40x leveraged short position during a short squeeze, I'm watching it all day.
But yeah, people are saying all this stuff and I guarantee they haven't watched the price movement as long as I've been watching it so far. I know the price has a strong potential of diving down once the price starts dropping even a little bit because of the leveraged longs that people are getting too overconfident with. In fact yesterday I even saw a long squeeze as the price was falling below $67,000. But the price still continued grinding upwards slowly. That's organic demand.
