Bitcoin's inevitable drop to 16k underway?Long term I am bullish on Bitcoin and Cryptocurrency.
Short term, I think we are likely to see a rapid sell off to around $16.6k.
When setting this trade up, I considered a way to lower the risk and increase the return. Rather than using leverage directly on Bitcoin, an asset with solid fundamentals and the safe haven in a cryptocurrency rout. I have taken shorts on two other cryptocurrencies, that I have priced as over valued.
1) I believe Ethereum Classic (ETC) is currently overvalued, due to a recent rally spurred by Ethereum's (ETH) 2.0 network upgrade. ETC has been pumped with the sales pitch >> ETH miners will move to ETC, dragging over a significant portion of the ETH user base over. This is not likely in my opinion and therefore the rally is not supported with fundamentals. I foresee a sell off to the $18-20 range, a range in which I will close out my position. Current trade entry of $41.60.
2) The second short is Optimism (OP), a relatively new cryptocurrency that has been pumped from $0.50 to $2.30. Even considering it's retreat from $2.30 to $1.15, I see a further pullback to $0.80 likely, maybe $0.60 will see. Entry of position at $1.46.
Best of look out there.
RISK: Crypto might rally with the upcoming upgrades of both ETH and ADA.
