Bitcoin Presents Good Opportunities To Short

There are some good opportunities to short for Bitcoin bears that have been waiting patiently. Those that followed the herd and got too excited around $8.6k expecting a crash towards $7.6k would be panicking now though because this has been a very aggressive short squeeze. Most retail traders whether it be bulls or bears continue to make the same mistakes over and over again but for those that are reasonable, there will be some good entries to be short on the market in the near future.

The reason this is a better time to look for short entries is because previously we had no idea how high the parabolic run up could go. This is why it is always important to wait for confirmation. The price broke below the key trend line support and that was our cue that the bullish uptrend had broken. Now we need confirmation of a bearish reversal in BTC/USD which is likely to coincide with a trend reversal in the stock market this time. The S&P 500 (SPX) has run into the top of the symmetrical triangle and it seems to be trapping in the last wave of retail bulls before the downtrend begins.

It is important to realize that the S&P 500 (SPX) climbed above the 200-week moving average one last time before the major downtrend on 2008 began. The same has happened this time, which I called in my earlier analyses at the beginning of this year, well before this move happened. This fractal has 2008 written all over it and this would be the first time for Bitcoin to witness a bear market in stocks. Normally, I’d expect BTC/USD to decline towards $1k (top of the previous cycle) to find its true bottom and then begin an uptrend. However, these are unprecedented times for Bitcoin and therefore it wouldn’t surprise me to see something even more bearish. This is why now is a good time to be looking for short entries as fortune is soon going to favor the bold bears.