Whilst market sentiment is very bearish right now, let's not get caught out by a sudden pump. Here are three reasons to be extra careful shorting BTC right now.
1) We have strong support in the Golden Pocket of the current macro structure which began with the bull run earlier this year. We are currently sitting exactly on the .618 line.
2) This lines up neatly with a re-test of the upper trend line of a falling wedge that began forming in October, which could suggest a rally up to the .5 line or the .382.
3) Longs on Bitfinex have been rising parabolically and steadily since 23rd November and now outnumber Shorts 6:1. Usually this is a contrary signal. However this rise seems unique to BITF. Do they know something we don't?
I remain cautiously short...
1) We have strong support in the Golden Pocket of the current macro structure which began with the bull run earlier this year. We are currently sitting exactly on the .618 line.
2) This lines up neatly with a re-test of the upper trend line of a falling wedge that began forming in October, which could suggest a rally up to the .5 line or the .382.
3) Longs on Bitfinex have been rising parabolically and steadily since 23rd November and now outnumber Shorts 6:1. Usually this is a contrary signal. However this rise seems unique to BITF. Do they know something we don't?
I remain cautiously short...
