How are we all today, it is a nice fresh winters day in North Queensland Australia this morning, wonderful weather for sitting with the feet up doing some TA analysis on our favourite cryptocurrency Bitcoin .
After closing the week yesterday in great stead for the bulls, we closed the first day just a . We are though sitting firmly underneath a very long-term line that has really stopped our momentum in its tracks. I still think a short as a hedge is the right play, I will be adding to it at 7800 7900 while still in my long, I added to the position overnight which has brought up my entry, which is not an issue with the hedge. Remember these hedges will eat at your profits generally but reduce your risk in a big way. If you play it right in a trend you can generally short the pullbacks while long and then close your short at the dip and then ride the dip back up. This can be risky, so keep watch, if the dips start painting lower lows on 4-6hr TF, a reversal may be in progress.
December are well in Contango currently and are a great short opportunity, if you are looking to hold it for a long period, currently mark price is anywhere around 50-60 dollars above spot price but as we near settlement it will close on spot, so now is a good time to get in, if you are in the belief that we will still be under current price in a couple of months. This price difference can swing in and out of Backwardation and Contango, so make sure you have enough MArgin to cover you in case of swing.
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Trader, Chart analyst and all round larrikin. Reside in NQ Australia, surrounded by Crocodiles, snakes & giant spiders, not to mention the boxing Kangaroos and devilish Drop bears. It makes my job quite hazardous but strewth mate, I love it.
next target would be around the 200dma at 8667 but with the daily closing, in a few hours, we may retest the broken trendline at 8100-8200 first. I was stopped out of my hedge short yesterday and am not getting back in until I see some kind of loss in strength to this current uptrend.