^^ This. Looks like that big buy was no whale accumulator, but a/many shorter(s) closing their positions for
low slippage.
Potentailly bearish in reality as 11k was waaay too high for the market to make any significant move down.
Now at 5.5k, there are not enough shorts to squeeze IMO.
What does this mean? I am not very familiar with the technical terms...
That big wall on BFX allowed the majority of the 5k shorts to be closed without moving the price significantly.
Low slippage = executing an order without significantly moving the market - if the wall had not been there, executing a market buy to close those shorts would have wiped out the order book and pushed the price way higher = high slippage
Hence why they were potentially a sitting duck for a short squeeze. Now that they are gone ...
On the other hand it is bullish that they closed them, right?
Even if we won't have such a sudden spike in price.
I'm afraid those shorts were a warranty against the price going down. Shorts are btc sold for usd with the hope of buying back when price goes down, so (i could be wrong as i lack experience there) in my understanding shorts = potential buy pressure on a downtrend.
Now that market went clear of those, with low slippage also, it could very well go down to squeeze longs without that added buy pressure.
Weren't these shorts a speculation of a falling price? So with them closing, they actually buy new BTC and you never buy before a price you personally see as bottom i'd think.