Why do they keep Shorting...?

[Zoomic]

I read that $90 million worth of bitcoin shorts have been liquidated in the past hour as bitcoin moves pass $80,000.

My question is; Why do they keep shorting even when the market is pointing towards bullish, why not long instead?

I don't trade futures, I don't know if I am missing something... There's clear indication that the market is targeting $85,000, so, why not long from 80k to 83k instead of shorting?

[Oshosondy]

Just take 100 traders and do a survey on them, you will understand that as some people want rain, some want sun. As some people will predict that the price of bitcoin will fall today, some people will say no it will increase.

Some traders are not swing traders, they are day traders. Some people may want to scalp, but because the market go against them, they wait, later the money got liquidated.

Some people set stop loss, it filled at market order and it will be part of the money that got liquidated.

So people use high leverage and got liquidated.

[Merit.s]

The market is unpredictable and you wouldn't know if you are to be profitable if you go short or long which is the problem here. I never expected this pump in price to $81k because I was expecting a price correction.

This is the same way traders think and before you know it, they get liquidated if the market goes against them. This is why you should only trade with the amount of money that you can afford to lose.

[Zoomic]

Just take 100 traders and do a survey on them, you will understand that as some people want rain, some want sun. As some people will predict that the price of bitcoin will fall today, some people will say no it will increase.

Some traders are not swing traders, they are day traders. Some people may want to scalp, but because the market go against them, they wait, later the money got liquidated.

Some people set stop loss, it filled at market order and it will be part of the money that got liquidated.

So people use high leverage and got liquidated.

So at the end of the day, you're saying that these liquidations are more about their poor risk management than simply the direction they chose to trade.

Well, I have to agree with you, the market moves both ways so it's possible that it can easily go against ones prediction but a proper risk management strategy will help reduce the risk of getting liquidated.

The market is unpredictable and you wouldn't know if you are to be profitable if you go short or long which is the problem here. I never expected this pump in price to $81k because I was expecting a price correction.

This is the same way traders think and before you know it, they get liquidated if the market goes against them. This is why you should only trade with the amount of money that you can afford to lose.

I have to agree with the unpredictability part. Since there's no certainty about the next direction of the market, shorting can still make sense when the prediction is simultaneous to the market direction.

Maybe the question now should what signals these short sellers usually see that makes them willing to take the risk especially when the market sentiment is pushing towards the long.

[Charles-Tim]

So at the end of the day, you're saying that these liquidations are more about their poor risk management than simply the direction they chose to trade.

Definitely. If you can be able to check people that are trading, you will be surprised that some people are using 20, 30, 40, 50 skd higher leverage to trade. Such people will have their trading assets got liquidated if the market slightly not favour them but move in the opposite direction. Many people think they can make high amount of money with small amount of money, so they will leverage. Not thinking of the downsides until it happened.

[sokani]

The market is very difficult to predict. At times, it may seem bearish, and the next thing, it goes bullish. That's just how the market is.

No trader would have explicit knowledge of the direction the market is heading to and would want to lose money by trading the opposite.

No one does that. I'm sure that after their analysis, all indicators pointed towards a bearish trend, and they decided to go short. Too bad it

didn't go the way they predicted.

[Charles-Tim]

No one does that. I'm sure that after their analysis, all indicators pointed towards a bearish trend, and they decided to go short. Too bad it did go the way they predicted.

Not that it is too bad that bitcoin did not go towards their direction, it is just too bad that they are using high leverage. Bitcoin is not and has not been so volatile as it was in the past. Bitcoin increased from a price above $76000 and not up to $82000, but they were liquidated. Is that not high leverage that they used that caused it?

[uchegod-21]

No one does that. I'm sure that after their analysis, all indicators pointed towards a bearish trend, and they decided to go short. Too bad it did go the way they predicted.

Not that it is too bad that bitcoin did not go towards their direction, it is just too bad that they are using high leverage. Bitcoin is not and has not been so volatile as it was in the past. Bitcoin increased from a price above $76000 and not up to $82000, but they were liquidated. Is that not high leverage that they used that caused it?

High leverage makes one lose so massively and that is what wrecks many people in the market. But apart from high leverage traders, other day traders could also be affected by the market hitting their SL.

For the high leverage traders, they could be the reason for price manipulation. The institutions and whales have idea that they are snorting and that makes them to pump in more money to cause short squeeze and wipe them out. It is not advisable to mote aggressively against the market or use too much leverage.

[Crypto Library]

I read that $90 million worth of bitcoin shorts have been liquidated in the past hour as bitcoin moves pass $80,000.

My question is; Why do they keep shorting even when the market is pointing towards bullish, why not long instead?

I don't trade futures, I don't know if I am missing something... There's clear indication that the market is targeting $85,000, so, why not long from 80k to 83k instead of shorting?

Actually, here I have to say that bitcoin market has a worst character and that it will go against what most people expect. And that's basically what happened here.
Here for a long time, people have seen a pattern in the market that is Bitcoin entering a bear season after the end of the bull season and from here most people are currently thinking that Bitcoin may be going down now to create a bear bottom price because it is indeed true that Bitcoin has risen above 80k to create a bull trap which is close to most people.

And this is probably why most people thought that Bitcoin would continue to go down after touching 80, and that is why they took short trades but the opposite happened, and the result is that we are seeing a large amount of market liquidation.

[Moreno233]

I read that $90 million worth of bitcoin shorts have been liquidated in the past hour as bitcoin moves pass $80,000.

My question is; Why do they keep shorting even when the market is pointing towards bullish, why not long instead?

I don't trade futures, I don't know if I am missing something... There's clear indication that the market is targeting $85,000, so, why not long from 80k to 83k instead of shorting?

You don't have the right to tell them how to manage their portfolio neither do you know what their target or objectives are so allow them do do with theur money as they please. If they are shorting Bitcoin upon every pump, that means they would have seen substantial profits and that is what really matter to them than anything else. It is either you follow them in the short term trade or continue to buy from them when they sell. As you can see,  despite any sell off that happens when price pumps, the worst that can happen is a correction and price will always bounce back.

[taufik123]

Doing Short selling with a total of $90 million is certainly intended to influence the mentality of retail traders,
because it is clear that it is possible to know how much they will spend on Short selling.

It's like a strategy to influence the psychology of other traders.
Now we can't determine if the market is in a bullish trend or if it's just Bulltrap.

Whales have their strategy and they know what to do, We are only a small part of this trade and cannot affect the trend completely.

[ZAINmalik75]

I read that $90 million worth of bitcoin shorts have been liquidated in the past hour as bitcoin moves pass $80,000.

My question is; Why do they keep shorting even when the market is pointing towards bullish, why not long instead?

I don't trade futures, I don't know if I am missing something... There's clear indication that the market is targeting $85,000, so, why not long from 80k to 83k instead of shorting?

It's not necessary for all those trades to have been started after the price pumped towards $80k or even before that, because traders might have opened their short positions when the price was below $70k, and they didn't use stop-loss and also didn't use very high leverage, because when we don't use very high leverage and have a good enough margin, our futures trades can drag around quite well until the market finally reaches that point where the margin call is hit, and then the trade gets liquidated.

So when something like this happens when a large amount gets wiped out of the market when the market pumps, it is basically a combined amount of all the trades that were opened earlier when the price was either low or high, and then most of them just got liquidated when their limit reached. Last time when Bitcoin crashed from $115k to $101k, almost about $20B were wiped out from the market, all long positions because people were optimistic that the price is going to go up again from there, but it didn't.

[Hamza2424]

I read that $90 million worth of bitcoin shorts have been liquidated in the past hour as bitcoin moves pass $80,000.

My question is; Why do they keep shorting even when the market is pointing towards bullish, why not long instead?

I don't trade futures, I don't know if I am missing something... There's clear indication that the market is targeting $85,000, so, why not long from 80k to 83k instead of shorting?

Because there are people who thought the market would not pump. They thought it was at $77K, so it would probably dump, but then it started pumping and even just hit $82K. The pump can't be manipulative because it is the demand from the buyers. Less circulating supply in the market also increases the price.

Bro, there is no clear indication that the market is going to hit $85K! What clear indication do you have that those who were shorting did not know?

I am not shorting as well, but I think btc will eventually dump as well, especially when it was at $77k.

[Alphakilo]

Doing Short selling with a total of $90 million is certainly intended to influence the mentality of retail traders,
because it is clear that it is possible to know how much they will spend on Short selling.

It's like a strategy to influence the psychology of other traders.
Now we can't determine if the market is in a bullish trend or if it's just Bulltrap.

Whales have their strategy and they know what to do, We are only a small part of this trade and cannot affect the trend completely.

The last sentence hit me hard with the reality that whales actually own the market and retail investors or the more conservative traders just get the crumbs or suffer the most when there's loss by either chasing green candles or trying to do as the whales do, and that's by shorting positions.
The derivatives market is quite different from the spot market and that's why when it comes to the futures or options market traders must execute short selling or buying frequently to maintain a delta neutral hedge as the price keeps fluctuating in the market.

Retail or the more conservative traders must obey risk management practices to avoid opening long positions once there's a slight pump in price, instead they always prefer to wait for a dip to reduce their risk to reward ratio.

[nelson4lov]

They keep shorting because there are always going to be two category of people in every market.

• People who think the current market price is expensive and should trade lower
• People who think the price of an asset is undervalued and should be repriced higher

I belong in the the second category because I believe that the lowest an asset can go is -100% but the upside is infinite.

The people shorting right now are not always wrong and some of them are not shorting long term, just there long enough for price to retrace lower on the LTF.

[blockman]

I read that $90 million worth of bitcoin shorts have been liquidated in the past hour as bitcoin moves pass $80,000.

My question is; Why do they keep shorting even when the market is pointing towards bullish, why not long instead?

I don't trade futures, I don't know if I am missing something... There's clear indication that the market is targeting $85,000, so, why not long from 80k to 83k instead of shorting?

That's what trading is for, you can bet with or against the market. It's all uncertain and they have their analysis prior to what can happen next. I avoid futures and I don't trade it and I can't take the risk that it has got and if they have it the short, they're in profit because making money there is faster than the spot depending on the x they have leveraged. As for the $85k, we'll see on who's right with that but I am also predicting that we might see that any time from now on. Otherwise, these traders will continue to do decide against the market if they still have the means to do it.

[IjawMan]

The market is unpredictable and you wouldn't know if you are to be profitable if you go short or long which is the problem here. I never expected this pump in price to $81k because I was expecting a price correction.

This is the same way traders think and before you know it, they get liquidated if the market goes against them. This is why you should only trade with the amount of money that you can afford to lose.

Very on well as you have explained it.
Is a prediction market we are dealing with and when you think you are about to exploit the market through one anticipated direction, next thing is you getting screwed up in a deep cut loss.

 Many of us did not expected the pump too early in this month connecting the dots with how september is known to be.

Trading can be too draining which is why much persons would rather prefer Bitcoin investment using the DCA strategy of accumulation.

[Zaguru12]

Many of us did not expected the pump too early in this month connecting the dots with how september is known to be.

Trading can be too draining which is why much persons would rather prefer Bitcoin investment using the DCA strategy of accumulation.

I think it will be really risky for someone to go all in to Short simply because September is predominantly bearish, the month of August is also predominantly bearish but ended up been bullish. The volatility that the bitcoin market experienced in the last two weeks will most definitely be reflecting that it’s risky to just short the market even in September.

$90 million is not that huge compare to some liquidation amounts I think the reasons why most have their liquidation at $80k is simply because they wanted to actually have a tight margin to reduce the risk while most of them were just high leverage users which was seriously bad even when the trade was this risky

[RGBTC]

so, why not long from 80k to 83k instead of shorting?

This proves that the market remains unpredictable. I believe that some of the $90 million in liquidated positions belonged to speculators with years of experience in the field. That is how the market moves toward stability; if resistance at the sell wall is too thin, price action becomes aggressive and unhealthy.

[BitMaxz]

We don't know why they chose shorting over long because all traders have different mindsets and trading styles. Perhaps they are shorting because they believe the recent massive pump is a fake, or they believe they are shorting because it is normal for the market to have ups and downs, and they believe shorting will result in a profit.
We have different opinions when it comes to trading so it's normal some people to see being liquidated because they choose shorting.

But for me, since the buyback operation will come next week, this is going to be bullish and slowly wiping all that liquidity beyond $81k.