Are you a bull or a bear?
It doesn't matter much here to be honest.
This one isn't hard. The resistance and support areas for BTC are obvious.
Are you a bull and you think BTC is going back to 20k and than 50k or maybe up to 250k?
Maybe someday it will...
But even if BTC found it's bottom and we are now in uptrend it's just very unlikely for the price to sky rocket through 6k. So why not short it?
And than you can reload lower if you want...
After it bounces from the resistance the only support at the moment lies down at ~4250 area. It's really not much else in between. No man's land. At least for now.
I expect price will stay between in 4.2-6k area for quite some time as well.
It's hard to imagine that BTC will switch from bear to bull mode so smooth (even if some alts suggest so).
So we should get some retests of lower level(s). Some ugly red bars to get rid of all of panic sellers.
There will be plenty of them!
Are you a bear?
Just short it. Take some profit at support and hold some if you think we will see new btc bottom. Short again if it comes back to resistance at 5850.
You must be wondering what if price slices through resistance...
Well guess what --> You are risking around 4% to gain 25%.
This trade needs to work only one time out of seven.
So if you think there is like 20%+ chance price will bounce of this resistance than you are printing money on the long run. Even if you got stopped out more often than not.
This is why you have stop loss!
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