BTC short looking good.
Tuesday bluesday.
Betting against the crowd can have some distinct advantages. Most of crypto twitter is desperate for the reversal of this bear trend, to get back on the road to 33k or 50k, whatever the new target may be. I ultimately think we're headed there (and beyond) but in the meantime unless you're a dedicated hodler, you're going to suffer death by 1000 cuts getting shaken out in the chop if you're not careful.
If you're trading on Bitmex, the structure of their contracts forces traders occupying the more "popular" position (either long or short) to pay a funding rate every 8 hours to traders occupying the less popular position. This is a clever way to avoid expiry on long/short contract positions. The funding rate is a method to tie the contract price closely to the price of bitcoin from which the value of the contract is derived. If traders begin straying away from the underlying price of bitcoin, the funding rate will increase, drawing traders back to the true value.
If you have been following along on my recent trading, you see that I'm still (cautiously) bearish. Watching the funding rate on bitmex, it appears that the bulk of traders are not - the funding has been positive for the bulk of the last 2 weeks. This means for all of the short positions, longs have been paying shorts a percentage of their position every 8 hours. It's not much, but if you're confident in market direction it can add a bit of icing on the cake getting paid by the people who bet against you before closing your position.
If you have read "Reminiscences of a Stock Operator" you'll recall the author's lesson on Union Pacific shares. He took a tip, listened to the crowd and against his gut instinct took the other side of the trade. He lost money.
For two weeks I've been against the crowd, but it's looking like that's been the correct move. Getting paid for it with the funding rate is great too!
We're now at a big decision point as price is headed for 7650, the approximate zone of the trend line from the multi-month falling wedge. It's either a bounce, with the bottom put in... or the 2013 fractal is still intact and we get some cheeeeappp bitcoin in a few weeks. I'm personally hoping for the latter so I can accumulate more.
We should know this week which direction this thing goes. I'm happy to be on the bear train, but if price action shows I'm wrong, I'll bail and bail quick.
Stay safe fam.
As always, if you want to trade with leverage and no hassles, use my link below for a discount on fees.
https://www.bitmex.com/register/UhBYnD