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1/ Thread
$BTC
Since everybody is mega bullish, I'm gonna be a devil's advocate and try to make a case for a coming correction. How to play it and few things you should pay attention to
$BTC
Since everybody is mega bullish, I'm gonna be a devil's advocate and try to make a case for a coming correction. How to play it and few things you should pay attention to
2/
First, let's brush up on history (which doesn't repeat but often rhymes)
In 2015, we had pretty similar parabolic run (~150% vs 140% now) which marked the beginning of the new bull market. After it topped off, it corrected to 0.618 Fib and made major S/R flip.
First, let's brush up on history (which doesn't repeat but often rhymes)
In 2015, we had pretty similar parabolic run (~150% vs 140% now) which marked the beginning of the new bull market. After it topped off, it corrected to 0.618 Fib and made major S/R flip.
3/
While we can see some few technical differences and I'm sure a gazillion of fundamental ones, the idea is still eerily similar.
It's reasonable to expect a 30-40% correction this time around.
While we can see some few technical differences and I'm sure a gazillion of fundamental ones, the idea is still eerily similar.
It's reasonable to expect a 30-40% correction this time around.
4/
Now, if you trying to short this move or trading short term, few things I found helpful for myself. If this was the local top, then:
1) Bitmex funding should be positive (already is) and shouldn't revert back to negative
2) Shorts should drop as we correct, longs increase ->
Now, if you trying to short this move or trading short term, few things I found helpful for myself. If this was the local top, then:
1) Bitmex funding should be positive (already is) and shouldn't revert back to negative
2) Shorts should drop as we correct, longs increase ->
-> people closing shorts out of fear it pumps back up, and longing this entire correction only to throw it up at the bottom and cycle repeats, classic. Do the opposite
3) Selling volume should keep increasing the lower we go
3) Selling volume should keep increasing the lower we go
I suppose, we have "Bloody Monday" in sight and next week is correction. Important to note to yourself to not to forget about everything that happened and turn bearish at the bottom, selling what could be a decent long entry.
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