Want to trade with me?

sign up for bybit with my like and send me an email

Bitcoin is currently trading at 44,180. It had a rally of 35% over the last two weeks, coming up strong from a low of around 32,900. With this move, a lot of traders will be expecting more upside. 

 

While continuation to the upside certainly is a possibility, I would be very cautious with any long traders at this point. A rapid move to the upside calls for FOMO. It is easy to visualize all-time highs just around the corner, and because of this, jump in long without any specific plan on when to exit the trade, should it go in the wrong direction. 

I think this is a solid place to start looking for a possible short trade. We are coming into the value area low of the entire downtrend we have had for the last couple of months, along with several other key levels. See the image below for specifc levels. 

At this point, I am looking to short the 45,130 level with a stop around 47,500 and a take profit somewhere down below the most recent swing low (i.e. lower than 32,900). The risk to reward ratio on this trade is solid, and I think there is a high chance this may play out. Note that I will naturally move my stop loss to break even before a potential move down to 32,900. Should the trade get triggered, I will make sure to keep everyone posted.