The price of Bitcoin (BTC) fell down a cliff Sunday that is early morning but don’t say we didn’t warn you. (Twice.) Now, is the play that is best to accomplish absolutely nothing?


Daily Chart

Bitcoin tanked very quickly from above $4100 to the 50-day exponential average that is movingEMA), where it immediately found support. This has provoked some savvy traders to take out a position that is long but this kind of bold gamble just isn’t without danger.

Taking a position that is long a bear market can certainly be profitable, but it is akin to swimming upstream. When the trend that is macro down, purchasing or longing Bitcoin is always to opposed to the general trend of this market — which includes been securely down during the last 14 months.

Indeed, a convincing and bounce that is profitable of the 50-day EMA is possible, but only traders willing to stomach a large amount of risk should take such a bet and stop losses should be set. In a market as volatile as this, Bitcoin could easily dump straight down to the 200-week moving that is average perhaps not remove it completely.

Stochastic RSI

Bitcoin’s one-day Stochastic Relative Strength Index additionally plainly shows more space to fall within the future that is immediate. The indicator that is popular reach oversold territory within the coming days, barring a razor-sharp and unexpected reversal on the market leader’s cost the next day.

whilst it is not the sexiest viewpoint, doing absolutely nothing within the instant term for Bitcoin could be the wisest play.

There is just a significant danger whenever going very long only at that minute, but shorting inherently sets you in a position that is dangerous. If one does opt to have fun with the market, he/she should make certain they’ve correctly set their end losings and it is willing to lose their whole investment.

What do you consider concerning the cost of Bitcoin (BTC)? Inform us your thinking within the commentary below!


The views and views of this author shouldn’t be misconstrued as economic advice. For disclosure, the writer holds Bitcoin during the right time of writing.

Images thanks to TradingView.

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