Off the back of the ETF decision delay, and $6800 breaking down sentiment have been ultra bearish, and alts have literally been capitulating. $5800 is such an important support level for Bitcoin. While this support holds we have a very nice bottom area for Bitcoin, and bulls do still have hope, albeit little. While Bitcoin continues to make lower highs it's hard to be bullish, but it's nice this $5800 support is still holding, but for how much longer can it last, how much longer can longing this region be free money?
The RR of opening a short here is not great, while this $5800 support is so big. I would not advise opening between $5800/$6100. Wait for $5700 to break if you're not already in a short position. But on the contatary, shorts have increased by 5k and longs decreased by 3k in the last 6 hours and BTC didn't even make a lower low. I can't even defend these new bitcoin shorters anymore, they literally only short the bottom and they will all close in a big $500 candle. Shorts on bfx are silly in my opinion, wait for support to break, don't open a short on a massive support level.
With that said If $5800 does break, go ahead and open a short(if you're not already in a short position). Highlighted are some key support regions where i can see bounces playing out. The first i would expect to see with a big panic sell of support breaking would be $4700-5000. Expect a big sell when the support breaks, hence going straight through $5500. 5k is a fibonacci support level of 0.786, horizontal support and a nice psychological number for buys to be placed at.
I always trade with the market, if there is little to no bounce at 5k expect to see the lower supports to play out, until we find our bottom, and we can move onto the next market cycle.
The RR of opening a short here is not great, while this $5800 support is so big. I would not advise opening between $5800/$6100. Wait for $5700 to break if you're not already in a short position. But on the contatary, shorts have increased by 5k and longs decreased by 3k in the last 6 hours and BTC didn't even make a lower low. I can't even defend these new bitcoin shorters anymore, they literally only short the bottom and they will all close in a big $500 candle. Shorts on bfx are silly in my opinion, wait for support to break, don't open a short on a massive support level.
With that said If $5800 does break, go ahead and open a short(if you're not already in a short position). Highlighted are some key support regions where i can see bounces playing out. The first i would expect to see with a big panic sell of support breaking would be $4700-5000. Expect a big sell when the support breaks, hence going straight through $5500. 5k is a fibonacci support level of 0.786, horizontal support and a nice psychological number for buys to be placed at.
I always trade with the market, if there is little to no bounce at 5k expect to see the lower supports to play out, until we find our bottom, and we can move onto the next market cycle.