Bitcoin (BTC) quickly recovered the $90,000 (approximately 132.87 million Korean won) mark after Wall Street opened on Wednesday. Analysts believe that during this process, market liquidity-sniping strategies targeted short positions, exacerbating short-term price volatility.
This surge has recovered most of the recent losses, with a single-day increase of 2.5%. Exchange data shows that prices fluctuated repeatedly during the session, quickly liquidating short positions. Experts explain that this movement is a typical "liquidity hunting" strategy targeting excessive short positions in the market.
Bitcoin prices have repeatedly exhibited a pattern of rapid price increases following the suppression of short positions. In particular, the price surges tend to be even steeper when large-scale liquidations occur. This recent price action also indicates a rapid shift in investor sentiment following last weekend's sharp drop.
However, some market analysts are wary of the upward momentum. They point out that prices could fall below the 100-week moving average "Ichimoku Cloud," a key technical indicator, and warn that the downtrend may continue after a brief rebound.
Bitcoin's short-term price movements remain dominated by liquidity-driven investment strategies. The structure is such that when short positions accumulate, buying pressure targeting these positions intensifies, leading to sharp price fluctuations. It's important to note that if this pattern repeats itself, it may increase investor fatigue and confuse them about entry timing.
🔎 Market Analysis
Bitcoin's short-term price action has reacted strongly to strategies dominated by "liquidity hunting." Attacks on short positions have been recurring, and the volatile price swings are likely to continue.
💡 Key Strategies
Be wary of excessive short positions, and the medium- to long-term trend may be reshaped depending on whether the price breaks below the technical support level (100-week moving average).
📘 Terminology Explanation
'Liquidity hunting': A strategy by which market participants target price ranges with dense short or long positions, aiming to liquidate these positions and trigger sharp price movements.
'100-week moving average cloud': A long-term technical indicator. When the price crosses above or falls below this value, it often indicates that the trend may reverse.
TP AI Precautions
This article uses a language model based on TokenPost.ai to generate an article summary. The main content may be omitted or may differ from the facts.
