XBT/USD Bitmex. Reasoning.

Let me explain the whole situation in details:

• 1. We fixed above the zone of $3550 - $3560, so at the first glance, we can start entering the scalp LONG on XBT now.
  However, given the weak volumes, we can still fall lower, just knocking out liquidations.
  The small fall can also help us to draw a Ruby (reversal pattern) and after that go up.
  The first target of this upward movement is the first strong level of the market maker - $3620;
  The next target is the resistance of the falling channel that we are following - $3650.
  
  
• 2. On the other hand:
  We are still under the MM level, under the mark of $3620, therefore the LONG from this point can be considered as a very risky trade. Thus, it is easier to open a SHORT position in the zone of $3560 - $3670 with Stop Loss over the resistance of the falling channel in the zone of $3700 or higher. So, we will be able to minimize the risks of losses due to the descending nature of the market, taking a SHORT position at the point where MM usually sell, and placing a SL above the point of a maximum risk mark of MM.
  
  
• 3. I also want to note one interesting point:
  After analyzing the charts of the LONGs and SHORTs on the Bitfinex exchange, you can see that neither LONG nor SHORT positions were opened during this dump, which tells us that the MM is still in the SHORT position. That tells us that this dump was triggered by an ordinary major player and was the consequence of a single sale for the market price. Also, if you look at the minute charts on Bitmex and Bitfinex exchanges, you can see that on Bitmex the price steadily went down by X points per minute, and on the Bitfinex exchange for 4 minutes there were both red and green candles, which tells us that the initiator of the dump was the player on the Bitfinex exchange, which confirms our hypothesis.
  
  
• 4. Conclusion: SHORT looks much more profitable here. Sell zone: $3560-$3670. Targets: $3520 - $3470 - $3440 - $3400 - $3370.
  

Comment:

Bearish flag.

Trade closed: target reached: