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$ .
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
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