Why does the coin pull back after liquidation of leverage?
When leverage is used, traders borrow money to increase their position. If the price goes against them, the system liquidates their positions, causing the price to fall or rise. After liquidation, the price often pulls back as the market recovers from a strong move.
How does it work?
If you bought BTC with 10x leverage, and it falls by 10%, then liquidation happens, and the price may pull back due to the closed positions.
Who are whales and how do they operate?
Whales are large players with big amounts of money who can manipulate the market by moving the price to make a profit. They buy or sell large volumes, creating a wave of liquidations, and then take profits when the price returns.
