Shorting BTC Amidst Binance Lawsuit News & Market Uncertainty
Hello TradingView community,
Today, we have witnessed a sudden drop in Bitcoin's price from $27,996 to $26,508, following the news that the Commodity Futures Trading Commission (CFTC) is suing Binance and its CEO, Changpeng Zhao (CZ), over alleged willful evasion of U.S. laws and offering unregistered crypto derivatives products. This significant event has generated considerable uncertainty and fear in the market, making it a perfect opportunity to short BTC using the Fibonacci retracement tool.
Chart Analysis:
Upon analyzing the chart, we can see that BTC has broken down below the 0.618 Fibonacci retracement level ($26,508), a critical support level, and it seems to be struggling to regain momentum. This breakdown indicates a potential further decline in BTC's price.
Trade Setup:
Considering the current market situation, we are proposing a short position on BTC with the following targets and stop loss:
Entry: Current price (or anything above $26,800)
TP1: $26,508
TP2: $25,939
TP3: $25,588
TP4: $24,100
Stop Loss: $27,500
Risk Management:
Please note that this trade carries significant risk due to market volatility and news-driven price fluctuations. It is crucial to employ proper risk management techniques, such as using a stop loss and position sizing based on your risk tolerance.
Conclusion:
As the market reacts to the CFTC lawsuit against Binance and CZ, we can take advantage of the market uncertainty by shorting BTC using the Fibonacci retracement tool. Keep a close eye on the market, and always trade with caution. Happy trading!
Today, we have witnessed a sudden drop in Bitcoin's price from $27,996 to $26,508, following the news that the Commodity Futures Trading Commission (CFTC) is suing Binance and its CEO, Changpeng Zhao (CZ), over alleged willful evasion of U.S. laws and offering unregistered crypto derivatives products. This significant event has generated considerable uncertainty and fear in the market, making it a perfect opportunity to short BTC using the Fibonacci retracement tool.
Chart Analysis:
Upon analyzing the chart, we can see that BTC has broken down below the 0.618 Fibonacci retracement level ($26,508), a critical support level, and it seems to be struggling to regain momentum. This breakdown indicates a potential further decline in BTC's price.
Trade Setup:
Considering the current market situation, we are proposing a short position on BTC with the following targets and stop loss:
Entry: Current price (or anything above $26,800)
TP1: $26,508
TP2: $25,939
TP3: $25,588
TP4: $24,100
Stop Loss: $27,500
Risk Management:
Please note that this trade carries significant risk due to market volatility and news-driven price fluctuations. It is crucial to employ proper risk management techniques, such as using a stop loss and position sizing based on your risk tolerance.
Conclusion:
As the market reacts to the CFTC lawsuit against Binance and CZ, we can take advantage of the market uncertainty by shorting BTC using the Fibonacci retracement tool. Keep a close eye on the market, and always trade with caution. Happy trading!
Disclaimer
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