Bitcoin has been in a downtrend for the past 12 days, no need to panic, right? Last night 1 billion longs were liquidated in under 1 hour as BTC price dropped to $53,000. Recommend reducing your position size during these choppy market conditions.
- Red zone 55k to 57k should be considered new resistance.
- Looking to bid under 50k, that would be a great entry.
- Any price action in-between doesn’t look interesting to us, too risky.
We can also make the case that last night’s drop is due to BTC options quarterly expiry date. Currently, there are $6B in options set to expire on Friday. March was expected to be a bearish month, as historically the last March months have been red.
However, it hasn’t been as bad, which can lead to whales trying to manipulate the price to minimize their losses. Recommend reading the twitter thread above which goes into more detail.
No room for mistake when your portfolio is $880, have set up our BTC bids. We haven’t touched our RAY-ETH and bDIGG-BTCB farms setup during Day 1. Of course the dip means we’re down for now.
Let’s wait for confirmation on market direction and save our energy for the weekend. Going to be interesting!