Bitcoin (XBTC/USD - BitMEX) - WEAKNESS
Bitcoin (XBTC/USD - BitMEX) - WEAKNESS

By milionarioo | DigiNomic | 27 Mar 2020


Bitcoin is undecided and limp: volumes are shrinking and there is no movement whatsoever. All under the resistance at 6900.
There was a very weak break attempt, but immediately rejected and since then neither supply nor demand seem to prevail.
Open interest is just as weak. In short, the classic range scenario, which in all likelihood will continue.

In such a scenario, the only position that can make sense is a coverage SHORT for those who are already SPOT LONG.
Beware of stop loss: another break attempt to hunt for liquidity is possible before a possible fall.
Surely it is to be placed above 7k, maybe even 7.1.
What makes SHORT palatable here is the optimal R / R.

LONG is not discussed before the confirmed break (at least 1-2 D candles above 6.9k), as directionality remains bearish.

For those who want to open a more cautious SHORT (type who does not have a position to cover), I would wait for a more evident signal on intra-day (such as the hunt for liquidity with a false breakout or failure swing) or the loss of support 6100.

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