Why do they keep Shorting...?

[LogitechMouse]

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 they believe that the market will make a correction at $80,000, and TBH, I can't blame them because that price is acting as a psychological resistance for some traders, and when the coin is on it's resistance level, you think that it's a good time to short. Well, it's good that I stopped trading temporarily because I might be losing money alongside those who shorted if I did.

Anyway, after that short pump to the highs of $82,300, Bitcoin's entering a short correction right now and it's price is near the $80,000 level, but  we might see the $78,000 - $79,000 as it's short term support. Going below it and it will test the $75,000 price support. Either way, I see Bitcoin as bullish for short to mid-term so... maybe what the CryptoQuant CEO might be true that the bear market is already over. Isn't it? I mean that's what people want to hear. The positive things, and they don't want negative things.

[boyptc]

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

There's logic into it and that's why they're putting a short position. As we know, there's this thought about that "everything that goes up must come down".

And that's one of the ideas that they are applying while they are applying short instead of long.

Therefore, that can be theoretically a style and strategy they have been applying but this is crypto market and bitcoin welcoming them once against that it's always unpredictable.

[TastyChillySauce00]

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?

When the market going up so high, good number of traders thinks the chance for the market to go down is tipped in their favour increasing the probability of the market going reverse because it can't go higher, they said. It's called gambler's fallacy, in reality the chance for the price to go higher is never out of possibility and in a bullish market, the coin can go higher beyond logic.

Which explains why despite the market becoming bullish, there will always be traders who opened short position hoping the market would reverse instantly. Out of millions of traders in the market accounted, some of them will fall into the gambler's fallacy and got liquidated not long after.

[taufik123]

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.

Yes, that's the reality, We don't know what the Whales are up to, We only know about the numbers that appear like in the $90 million Short Selling quote, even though there is a hidden star behind the number.

We think the number is huge, but for Whales or large institutions that play on Bitcoin, it's only a fraction of a percent of all the money they have.
So the goal of making people or retail traders panic will succeed with that number.

[PERtua]

I believe that it doesn't have to be about a short.I don't believe it's always a short. A trader will find that even with a bullish market. There will be a pullback that will last for a short period. The larger problem is too much leverage. And bad risk management. Bitcoin can reverse to a position prior to heading in the direction traders are expecting, and high leverage traders could be liquidated before that. I don't think that people should never short during a bull trend. The key is in having a good reason for the trade. leveraging appropriately and using a stop loss. It is okay to be wrong about the direction, it's a risk management failure if you allow one loss prediction to destroy your account.

[FinneysTrueVision]

When they talk about shorts being liquidated, it doesn’t necessarily mean futures contracts being liquidated. You can also go short on Bitcoin by borrowing it and then selling it for USD. You can then repeat this process multiple times to leverage your exposure. If you did not buy BTC before the price reached a certain point, you might find it difficult to unwind your short position.

Not everybody that is shorting Bitcoin is hoping for the price to go down. There are different basis trading strategies that let you make profits if there is enough of a price difference between Bitcoin on the spot market and futures market. This may require you to have one short position while holding spot Bitcoin or you can short spot BTC while going long on futures. The risk there is that one side of your trade can be liquidated, leaving you unable to lock in a profit.

[Jaweria parveen]

Anyway, after that short pump to the highs of $82,300, Bitcoin's entering a short correction right now and it's price is near the $80,000 level, but  we might see the $78,000 - $79,000 as it's short term support. Going below it and it will test the $75,000 price support. Either way, I see Bitcoin as bullish for short to mid-term so... maybe what the CryptoQuant CEO might be true that the bear market is already over. Isn't it? I mean that's what people want to hear. The positive things, and they don't want negative things.

Bitcoin has increased its price and reduced its price a little and it will continue to do so. If the price continues to decrease, Bitcoin can give some good response every week. Bitcoin has increased its price quite a lot in these days. If there are no negative effects on Bitcoin, the price will end its strong zone. Yes, at least the price has to be made to go down to $ 75,000 so that the price of Bitcoin remains within $ 70,000 and when the price increases, the price does not have too much weight to go down. Because the price can also fall the way it has gone up to $ 82,000 quickly, so the price should go down. Everyone wants positive things, but people have started getting positive things in a negative way.

[Futurexxx]

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?

The reality on ground is that we all look, but see differently.
Most traders are trading with ignorance, they just believe that since the market has been buying for a very long time, the reversal may be very near, and because of that, they short the market without knowing that using common sense to trade the futures or derivative market is a wrong thing to do, because you do not assume in the market, but rather you do your analysis and be sure of the price movement before risking your money on a trade.

$90 million worth of short positions liquidated is not a new thing in the market, because in the past their are even some worst case scenario, so having knowledge on how to trade properly is the only thing that can save a trader from such losses in the market.

[Synchronice]

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?

First of all, majority of traders are not capable of correctly guessing the direction of the price and secondly, during trading, almost everyone panics, so they look differently at the situation compared to those who do not trade and are on a calm mind.
The reason of why shorting is attractive is that when the price of the coin is falling, you have the ability to make a profit from the fall. So, if you invested $100 in Bitcoin and the price fell by 20%, your capital would now be $80 but if you open short position on futures with 1x leverage, your capital will be $120. You see, there is $40 difference between $80 and $120.

[free-bit.co.in]

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?

What makes you so sure Bitcoin is going to hit $85k anytime soon? I mean, what clear signal are you talking about, and what exactly guarantees that price level will be reached?

Im not saying Bitcoin won't get to $85k.I'm just saying that the market's unpredictable, and each trader/investor has his own outlook. Those who're shorting just think that there's a higher chance of the market retreating than we reaching $85K.

There are always bull and bear in every market phase. I've never seen a situation where everyone was looking in the same direction and fully sure price would move that way. So do not be surprised if they do not share the same view as you.

[Zoomic]

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.

From your submission, I think you're definitely not a day trader. I don't think a day trader will have the mindset of trading long and believing that it'll always favour their prediction since the volatility of the market is very high.
 
Your own category will be a very good strategy for position traders who capitalize on intermediate price swings rather than short-term fluctuations. Or better still for long-term traders.

[Charles-Tim]

The reason of why shorting is attractive is that when the price of the coin is falling, you have the ability to make a profit from the fall. So, if you invested $100 in Bitcoin and the price fell by 20%, your capital would now be $80 but if you open short position on futures with 1x leverage, your capital will be $120. You see, there is $40 difference between $80 and $120.

I think Zoomic understand this part of the reason that you stated. Yes, if the market price of bitcoin is falling, it will favour people that short, but when the market price of bitcoin continue to increase, those that short will lose. But when the market is very bullish like what happened recently, he asked that why did they not just buy. Although, it is not possible for everybody to buy bitcoin. The market does not work like that in reality.

[Iranus]

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?

With the latest Nonfarm data just coming out, Bitcoin immediately turned around and is now down to $79,2k as I'm writing this. ETH also dropped to $2,4k causing more than $173 million in long positions to be liquidated in the blink of an eye.
What do you think about this?

The market is extremely volatile in the short term, and futures traders are looking to profit from those moves. So it shouldn't be surprising that some people choose to short instead of long, even when the market looks bullish.


https://x.com/AshCrypto/status/2095852807798604256

[Dr.Bitcoin_Strange]

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

Is not that easy mate, the true explanation about this, which is what you are missing out is that every trader that is participating in the market have different strategy that they are using to confirm the next expected direction of the market. All of the different strategy that is being used to trade the market can give different confirmation about where price is going to move to, right? So, assuming that those traders that got liquidated used a strategy that confirmed to them that price was going to dip, and so they decided to short and end up getting liquidated.

Apart from the issue with strategy that I already talked about, we also have different kinds of traders and the people that lose so much are the day traders and scalpers, because of their trading approach, they lose money most of the time especially when they just want to take a quick short term profit and price ends up doing opposite. Some scalpers and day traders that entered for a long position today will also lose a lot of money because of how price reacted to today's NFP news.

[Merit.s]

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

Exactly! This is why I do tell people that past performance isn't a guarantee for future performance. September gave everyone the biggest shock of their lives especially, traders because they think we are in a bearish month and they made their decision through that analysis.

Traders should be very careful with how they go on short with high leverage because it's an easy way to get liquidated. Don't put your decision making only on one factor.

[Proty]

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

Exactly! This is why I do tell people that past performance isn't a guarantee for future performance. September gave everyone the biggest shock of their lives especially, traders because they think we are in a bearish month and they made their decision through that analysis.

Traders should be very careful with how they go on short with high leverage because it's an easy way to get liquidated. Don't put your decision making only on one factor.

What you said is correct. Majority of traders always have the mindset that the market will always repeat past history without knowing that anything is possible as long as bitcoin is concerned. September has always been bearish season however this doesn't mean that every September is marked for bear market.

The best thing is for traders to use low  leverage whenever they are speculating that there will be a decline in price of bitcoin. Because any wrong decision is going to affect their position. It will be  wise if  traders do put some other things into consideration while making decisions when trading instead of relying on past market trends or history.