One of my best strategies is not to trade bitcoin. But if you are like me it can really test your patience because you always want to be in the market.This scenario played out a week ago when i called a bearish bitcoin So what do i do; 1). Reduce your leverage to a max of 5x and short. What this will do will reduce your loss if you are wrong and also give you breathing room. which is, your most powerful asset as a trader.
so what is this breathing room. Lets say you wanna take a short while bitcoin is at 40k. Well i want my liquidation price to be 45k. That becomes my breathing room. More or less risk is something that should always be in your mind. This is how i handle all my shorts