Bitcoin breaks the previous high of 76900; after wiping out the shorts, the bulls need to be cautious!
The Federal Reserve's rate cut of 25 basis points is pretty much what we expected. But look at that Bitcoin price; although it surged to 76900, it seems like it's flying high, but actually, it's lacking momentum. It's likely to pull back and consolidate a bit; we need to study the upcoming trends carefully.
First, let's talk about Trump. Before he won, Bitcoin had already risen to 73000. Once he actually won, Bitcoin shot straight up to 76000. Everyone thought Bitcoin was about to soar and enter a bull market. But the reality is, there's not enough money in the market, and the rise feels quite constrained.
Now, about the contract market, those shorts were slaughtered terribly. From 66800 on the 5th to 76900 today, the shorts were cut down cleanly by a big knife, and now they have all turned into longs. Everyone is immersed in the joy of Bitcoin breaking the previous high, but at this time, we need to be more cautious.
Looking at the on-chain data, when Bitcoin hit 76900, about 1 billion worth of shorts were cleared. But if Bitcoin pulls back to 71000, there could be 3 billion worth of long positions that need to be cleared. Do you think the institutions will take the opportunity to absorb these positions?
Remember the end of October? Bitcoin also surged ahead, then immediately turned around and dropped 5000 dollars, harvesting the longs. Then negative news came out saying Harris had more votes than Trump, which was simply a trap to lure shorts. As a result, shorts from 69000 to 72000 all rushed in; the institutions were trying to harvest the contract market's positions. This time, we need to be even more alert and not fall into traps.
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