Simple BTC short tradeAre you a bull or a bear?
It doesn't matter much here to be honest.
It's not hard to see where is the resistance and support for BTC.
Are you a bull and you think BTC is going back to 20k and than 50k or maybe up to 250k? Maybe someday it will...
But even if BTC found the bottom and we are in uptrend it's just very unlikely for the price to sky rocket through 6k. So why not short it?
After it bounces from the resistance the only support at the moment lies down at ~4250 area. It's really not much else in between. No man's land. At least for now. I expect price will stay between in 4.2-6k area for quite some time as well.
It's hard to imagine that BTC will switch from bear to bull mode so smooth (even if some alts suggest so). So we should get some retests of lower level(s). Some ugly red bars to get rid of all of panic sellers.There will be plenty of them. Than you can go long. As a trade or even more as long term hold if you want.
Are you a bear?
Than it's even easier. Take some profit when price comes down to support and hold some if you think we will see new BTC bottom. Short again if it comes back to resistance at ~5850.
You must be wondering what if price slices through resistance.
Well guess what --> You are risking around 4% to gain 25%. This trade needs to work only one time out of 7. So if you think there is like 20%+ chance price will bounce of the resistance at around 5850 than this trade is printing money on the long run.
Even if you got stopped out more often than not.
This is why you have stop loss!
_______________________________________________________________________________________________________________________________________________________________________________________________________________________
If you've learned something new by reading this you can choose to support my work!
--> Sign up on Binance with my Refferral link: www.binance.com
--> Sign up on BitMEX and get 10% discount on all fees for 6 months after you sign up using this affiliate link: www.bitmex.com
The supporters will get all the help needed to learn using different trading platforms AND understand risk management in trading. So now your account can be long term safe.
Do you know why you should always use Stop Limit instead of Stop Market on BitMEX? If you don't you can wake up someday with an empty account.
You can also choose to just simply donate to any of my addresses:
BTC: 12qe5buhPQTAEnqmMYBNafymePd9BAgqJT
ETH: 0x134c60f13c48fe1ea48b10f980a2c68070f1bf82
LTC: LTuRNgXDU2ojj7DseX4GRhQcFyJzXo82mn
I always suggest trading on demo accounts at least until you have decent sample size of trades without losing money.
