Bitcoin's inevitable drop to 16k underway?
Updated
Long term I am bullish on Bitcoin and Cryptocurrency.
Short term, I think we are likely to see a rapid sell off to around 16.6k.
When setting this trade up, I considered a way to lower the risk and increase the return. Rather than using leverage directly on Bitcoin, an asset with solid fundamentals and the safe haven in a cryptocurrency rout. I have taken shorts on two other cryptocurrencies, that I have priced as over valued.
1) I believe Ethereum Classic (ETC) is currently overvalued, due to a recent rally spurred by Ethereum's (ETH) 2.0 network upgrade. ETC has been pumped with the sales pitch >> ETH miners will move to ETC, dragging over a significant portion of the ETH user base over. This is not likely in my opinion and therefore the rally is not supported with fundamentals. I foresee a sell off to the $18-20 range, a range in which I will close out my position. Current trade entry of $41.60.
2) The second short is Optimism (OP), a relatively new cryptocurrency that has been pumped from $0.50 to $2.30. Even considering it's retreat from $2.30 to $1.15, I see a further pullback to $0.80 likely, maybe $0.60 will see. Entry of position at $1.46.
Best of look out there.
RISK: Crypto might rally with the upcoming upgrades of both ETH and ADA.
Short term, I think we are likely to see a rapid sell off to around 16.6k.
When setting this trade up, I considered a way to lower the risk and increase the return. Rather than using leverage directly on Bitcoin, an asset with solid fundamentals and the safe haven in a cryptocurrency rout. I have taken shorts on two other cryptocurrencies, that I have priced as over valued.
1) I believe Ethereum Classic (ETC) is currently overvalued, due to a recent rally spurred by Ethereum's (ETH) 2.0 network upgrade. ETC has been pumped with the sales pitch >> ETH miners will move to ETC, dragging over a significant portion of the ETH user base over. This is not likely in my opinion and therefore the rally is not supported with fundamentals. I foresee a sell off to the $18-20 range, a range in which I will close out my position. Current trade entry of $41.60.
2) The second short is Optimism (OP), a relatively new cryptocurrency that has been pumped from $0.50 to $2.30. Even considering it's retreat from $2.30 to $1.15, I see a further pullback to $0.80 likely, maybe $0.60 will see. Entry of position at $1.46.
Best of look out there.
RISK: Crypto might rally with the upcoming upgrades of both ETH and ADA.
Note
HMMMM if is smells like short squeeze and tastes like it too....Note
The end it Nigh
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.