đ FORCE LIQUIDATION & LEVERAGE đ
if forced liquidations and leverage resets happen after a major event like a Crypto Reserve Summit, it can be a strong signal that whales are preparing for the next bull run. Hereâs why:
1. Whale Strategy: Sell High, Buy Low â
Whales and institutions often sell at high prices, creating fear and liquidations.
Once weak hands are forced out, they buy back at lower prices, preparing for a bull run.
2. Leverage Reset Clears the Path â
If leverage is too high, markets become unstable. Whales often trigger liquidations to flush out over-leveraged traders.
After a leverage reset, the market becomes healthier, allowing for sustained growth.
3. Short Squeeze Potential â
If too many traders go short (betting on lower prices), a whale-driven price pump can trigger a short squeeze, forcing shorts to buy back, pushing prices even higher.
4. Liquidity Pooling â
When liquidations occur, liquidity pools build up at lower levels. Whales use this liquidity to accumulate without moving the market too much.
Is It a Confirmed Bull Run Signal?
Not always. It depends on:
Market Sentiment â If fear is extreme, whales may wait longer before accumulating.
Macroeconomic Factors â If interest rates are high or global markets are weak, a full bull run may take longer.
Past Examples of This Pattern
March 2020 (COVID Crash) â Whales dumped, triggered liquidations, then bought at the bottom â Result: Massive bull run to $64K.
July 2021 (China Ban FUD) â Forced liquidations, whales accumulated â Result: BTC hit $69K.
Final Takeaway
If whales are selling before liquidations and buying at the dump, itâs a strong signal they are setting up for a bull run. But confirmation requires buying volume, on-chain activity, and sentiment shift. Smart traders watch liquidation levels, whale wallets, and leverage resets for timing their entries.#Write2Earn do your own research before investing đ $SOL
