At 23:04 UTC 13/07/2022, It was announced Celsius was going to file for bankruptcy imminently. $CEL, the token for celsius, immediately fell 15% in 2 minutes. This makes sense.
At this point, you needed to make a decision on whether it will continue to go up or down. Here are the possible scenarios I thought of at that moment.
- $CEL goes up as there is little follow up news
- $CEL goes up as over eager shorts gets squeezed
- $CEL goes down as bankruptcy annoucned
- $CEL goes down as more shorts pile on and it the token more worthless
Since crypto is super inefficient and it pays to be a 0 iq market participant, I thought 4 was most likely and that was what happened.
It's crazy how you had one entire hour to position yourself after the initial announcement that they were going to file for bankruptcy imminently. While I didn't short the news due to the timing of the news or catch the bottom long, I managed to capture some of that move up due to shorts getting squeezed.