🔥 Bitcoin Cash Hedging Trade After Huge Bullish Move
Updated
BCH has been making crazy gains over the last two weeks. This happened mostly during a period of sideways price action of Bitcoin.
Although the market is very bullish over the long-term, I think it's wise to protect against a sudden dump.
I chose BCH because it has been severely outperforming the market recently, even hitting a daily RSI of 89 at some point. The argument is that BCH has to do some mean-reversion at some point. In addition, once the market starts dumping it can give back all its gains very quickly.
My overall view on the market is still bullish, but building in some protection is never a bad idea.
Although the market is very bullish over the long-term, I think it's wise to protect against a sudden dump.
I chose BCH because it has been severely outperforming the market recently, even hitting a daily RSI of 89 at some point. The argument is that BCH has to do some mean-reversion at some point. In addition, once the market starts dumping it can give back all its gains very quickly.
My overall view on the market is still bullish, but building in some protection is never a bad idea.
Note
Trade hit stop fairly quickly. Was meant as a protection from a potential dump, but BTC broke bullish and BCH continued to go up.BCH is still very overbought, will come back to this token in the future.
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