The bears actually have all the cards in their favor here. Interest rates, the bubble, and token unlocks are all working in their favor. I have no doubts about the direction, but I’m keeping my hands off the trade.
Here’s what the data show: inflation has come in above expectations for the third month in a row, making a rate hike in December almost a sure thing; $BTC plunged straight through 74,000, with a low just above 72,000; and the daily chart is already at the most extreme oversold level of the entire cycle. It looks scary, but that’s exactly why I’m not chasing the short—after a drop this steep, jumping in now offers a poor risk/reward ratio.
My plan is to stick with the same direction, but wait for a rebound into my target range before adding to the position. Having the wind at your back doesn’t mean you need to enter immediately. The market will give you a window.
Here’s what the data show: inflation has come in above expectations for the third month in a row, making a rate hike in December almost a sure thing; $BTC plunged straight through 74,000, with a low just above 72,000; and the daily chart is already at the most extreme oversold level of the entire cycle. It looks scary, but that’s exactly why I’m not chasing the short—after a drop this steep, jumping in now offers a poor risk/reward ratio.
My plan is to stick with the same direction, but wait for a rebound into my target range before adding to the position. Having the wind at your back doesn’t mean you need to enter immediately. The market will give you a window.