What is the "Short Squeeze" and why is it happening today? 📈
Body of the post:
If you saw how prices skyrocketed after yesterday's drop, you may have witnessed a Short Squeeze. But what does this really mean?
The anatomy of a Squeeze:
Many traders bet that the price will continue to drop (they open short positions).
Suddenly, the price unexpectedly rises (due to news or a whale buying).
Those short traders are forced to close their positions to avoid greater losses.
To close a short, they have to BUY the coin!
This wave of forced buying pushes the price even higher, creating a domino effect.
How to detect it on Binance?
Look at the Liquidations chart. If you see giant red bars while the price is rising, there is your Short Squeeze!
Question: Has it ever happened to you that the market turns just when you entered short? 👇
#ShortSqueeze #BinanceAcademy #Trading101 #Liquidations #EducacionCripto