Considering Another Short XBT position - Have not entered

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Considering Another Short XBT position - Have not entered

Typically the best time to initiate a short position is after a sharp rally, but I am not in a position at the moment, this is a wait and see situation. One Possible play is to wait until we rally further up and I would then look for a parabolic move prior to initiating a short position. This is just an analysis of the current state of XBT. S&P went from looking negative today to bouncing from the lows at the end of the day on Friday March 27, 2020. No doubt short sellers that entered their positions on Friday afternoon are not happy with Monday as markets rallied. BTC , contrary to popular belief does co-relate to what I call "the adult" market, or S&P and DJIA and NASDAQ.

My thesis is simple, there is more selling to be done, but it is a matter of watching and timing. Current Resistance zones and demand zones are outlined by the graphic. I may enter a position but I would be pouncing on an opportunity if the case presents itself rather than deciding right away that XBT is "going down" for sure. Tight stop and an aggressive trailing policy would be implemented with an eye on break-even + some nominal profit prior to leaving the screen to let the trade play out.



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