BTC's market is boring, there is nothing much to say. The rebound trend of the daily line was drawn on the day when the August monthly line closed, and the plan was also provided. As shown in Figure 1.
👉 Today, let's talk about the principle of short squeeze. What is short squeeze? In English, it is called short squeeze.
To make an easy-to-understand analogy, short squeeze is to put the heads of short sellers under the wheels and squeeze them, which is the short squeeze market. The short squeeze market is also the rising market. The market will step on the bodies of short sellers and move up step by step. It will rise slowly in the way of a bulldozer, and constantly accumulate short positions. In the end, the market will often increase the volume to explode most of the short positions, until no one dares to short, the market will stagnate, and then it will go sideways again to accumulate opponents.
So to sum up, as long as there are people who keep shorting, the market will not fall very quickly.
Why did I dare to assert a few days ago that 52,000+ is the short-term bottom, and I drew out the structure and plan ten days in advance, on September 1st? Not only because of the structure, you can see it from the funding rate, but also because there are too many shorts, and the car on the road to decline is too heavy, and the market will not easily let the shorts make profits. The rapid stretch of 54K-58K in the past two days belongs to the short squeeze structure. The shorts are almost dead.
The combination of the naked K structure and the funding rate is the shadow of the trading method and market sentiment. So for trading, we must consider the cost-effectiveness, that is, the profit and loss ratio. Is it cost-effective to short at 53,54K? Obviously not, unless you are willing to bear the rebound of 4,000 or 5,000 points, but most people are highly leveraged and obviously can't bear it, then the profit and loss ratio is too bad. If the profit and loss ratio is too bad, don't chase the short. You can miss this rebound, but try to avoid making low-level mistakes such as chasing the short and holding the order. In other words, it is better to miss out than to make mistakes. If you don't understand, just lie flat. Can you still lose money if you lie flat? Therefore, the market in the past few days has obviously reached the relative bottom of the daily structure. There will be a lot of technical buying in the spot market to support the market. It is unwise to chase the short position.