Bitcoin (XBT/USD - BitMex) - Sell off

Bitcoin (XBT/USD - BitMex) - Sell off

By milionarioo | DigiNomic | 10 May 2020

he selloff we've been waiting for has arrived. This envisages a highly probable scenario of retracement, or in the best case of lateralization, on the horizon.
Do not panic: we had included this possibility in our hypotheses, also giving it a certain probabilistic weight. Hyperextensions don't last long.

So this is the time to take the scenario back in hand and take action.
The bias remains quietly Bullish, as long as it holds the support defined by the bottom range of two low ago (not the minimum, but the previous one!). Therefore, I act accordingly.

- Accumulation (or "buy the dip"): Division of purchases between the various supports (from 8750 to 6900), with stop loss on the confirmed loss of the 6900 themselves.
- SHORT coverage (if you are already exposed LONG and you want to parry a bit): between 9000 and 9500 is a good entry, with a stop loss above 10500.
- Covered Call (always if LONG has already been exposed) with Strike Prices between 9 and 10k, to also take advantage of the likely period of laterality in the next few days also grabbing some theta and gaining on the possible drop in volatility.

These are the two approaches that seem most sensible to me.

Beyond all, closing D will be very important, which if it starts to show demand and recover 9500, makes the picture even more Bullish than the past few days.
The loss already from today of the 8750, on the contrary, would show a prevalence of the offer.



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