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THE BIG SHORT (bad case for bitcoin)

HomeAnalysis — THE BIG SHORT (bad case for bitcoin)

 

TRADING STRATEGY ep4

 

The big short : 

Today at bitafta we interviewed Mena Sultan CEO of Leviathan_Capital_Partners here’s his thought.

He warned us that this strategy applies only if BTC drop and close below 9250$ .

MENA :

Hey everyone , since the last drop BTC is now down -30% since the 13880$ yearly high,

in the middle of low range : 10050-9550$.

The bottom was 9050$ (on average) but, the main question is : 

Is there more blood to come ?

So , here i’ll try at my best to explain what will be bearish and what will be bullish .

First … you have to know that usually BTC retrace between 30 to 40% in his runs, so for now everything is still ok.

The problem is the lack of bull sign down here , BTC couldn’t get back above the last resistance which sits around 10250 and couldn’t hit the 10800$ pivot .

So it’s some pretty bearish news … 

graph : https://www.tradingview.com/x/8w4amdz5/ BTC BAD CASE 

As you can see BTC can form a bearish head and shoulders here , below the 9250$ zone it’s pretty bearish . 

If somehow price drop below the actual HL we will see a flash crash to the next attention zones

  1. 8800$
  2. 8250$  
  3. 7500$

then BTC can bounce back to 9300$ zone to form the last shoulder which will make the 7500$ the neckline of the H&S 

As soon as this neckline is broken we’ll see a drop straight down to 5826$ , if that doesn’t hold we’ll might see 4962$-4558$ 

4500-4700$ should be the bottom of this bear market (if it happens) (200$ dif possible)

So the trading strategy will be :

Enter a short position as soon as BTC breaks 9250$ 

Add more once 9050$ is broken

Close ¼ of the position around 8250$

Close ½ of the positions around 7500$

-if price keep on dropping then re-open the position

-if price comes back to 9300$ re-open the short there.

close ⅔ of the position around 5826$ 

and close what’s last around 4962$ 

4558$ is the technical bottom 

Another strategy will be made for the bullish strategy in case of a run continuation 

A little explanation : 

after the breakout of the 5th wave of the parabolic run BTC can retrace back to the low of the 3rd wave which is below 5000$ 

after the breakdown of the REG line BTC usually retrace -50% , this will mean that the target is 4550$

 

REMEMBER THAT SHORTING BTC IS THE MOST DANGEROUS THINGS TO DO IN THIS MARKET 

THE BEST TO DO IS TO STAY OUT IN FIAT WAITING FOR THE BOTTOM 

https://docs.google.com/document/d/1vf0-HvIaMn6LwHPUk5P5NNW2edf6QWXWvAKgaH7yPvQ/edit?usp=sharing

 

 

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