When short sellers borrow assets and must buy them back to lock in profits, it creates a short squeeze that drives prices higher. This explains why prices often bounce after major liquidations.
Buy the underlying asset back (i.e., cover the short), which is described as a short squeeze.
The reason price actually bounced off this level, it actually goes deeper than you might understand. Now, the reason price bounces after long liquidations is because all the people that are going short that are in profit, for them to actually realize profit on their positions. People may not realize this, but when you take a short position, you actually borrow the asset from the exchange. And the only way to to realize profit is to buy the underlying asset back, which is what's called a short squeeze. For anyone that wants to understand.
