Took a break from charts for a few days, sometimes this is good thing as it can help you in you analysis of current market structures. Currently in Bitcoin from most immediate price action, we have signs of bearish trend continuation, in the form of hidden bearish divergence within the relative strength of the market. I see other warning signs flashing, which tell me a situation could potentially arise, where momentum to the downside could cross a threshold, leading to a long capitulation with cascading liquidations, resulting in over extension devaluation of the leading cryptocurrency. The only thing saving Bitcoin from extended period of devaluation is the design of the code within its technology, which forces a supply shock by way of cutting miners reward by 50% which is supposed to happen in near future. Although immediate forecast appears bearish short to medium term, the long term outlook remains bullish for the foreseeable future.
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Not financial advice here, but, a decent strategy to play here is to low leverage short on margin, while simultaneously buying drops on spot exchange. What this means basically is, at any point, at anytime, is a good time to buy Bitcoin, actual Bitcoin, that lives in cold storage, that you OWN, that you purchased with fiat. Short on margin low leverage to hedge your exposure, while also accumulating more Bitcoin as it falls, always taking profits as they present themselves and never holding shorts with long term objectives. Adopt this strategy and it will turn out best long term. Playing day trader or trying to scalp with little experience, often results in traders over trading and burning up Capitol on fees and unfortunate liquidations.
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Pay attention here. A mean reversion playing out no surprise honestly expected. How do you react to the recent move? Me personally, my API running trailing stop losses on my short from above 10k finally triggers. I dont make leverage long trade here out of FOMO... why would I need to. The gains realised from short accumulation, no need to margin long. Never jump into trades after moves happen ESPECIALLY NOT on leverage and def not with BITCOIN. Not all the time you need to be In a speculative trade, especially with margin. The volatility rekts Fomoers on margin even if they just had a great trade, they give it right back. They try to compound during the price action, they panic out of successful trades because of greed or FoMo, only for market to continue in their direction shortly after, shaken out by emotion a greed. These traders also fail to dedicate portions of their positions to provide liquidity to help the gears turn on the exchanges, oblivious to the fact they can be paid to open and close positions earning pages upon pages in rebates. If you market into a position or even standard limit order, and take profit the same way, if you have to panic out or get stopped out from "tight stops" you lose three fold, twice in fees and then loss from bad trade. Do not chase this market it will turn around and bite you. Instead use reverse psychology and let it come to YOU. If done correctly positions go into the green real fast and pretty. Those same positions layered up the order book staking rebates with 200% position size, flipping position like parabolic SAR (stop and reversal) with layered post only limit RIGHT BACK DOWN ORDER BOOK! Who cares if it goes to 100k or 1,000. Play what's in front of you, and practice with small positions, build crumbs into cookies with these strategies that I myself am still trying to master. Good luck friends, happy trading.