Holders should get out if bitcoin falls under $3200 says bear trader

[bbc.reporter]

I am not a technical analysis expert, however, bitcoin would be oversold under $3200 and it would be the right time to buy than to sell, wouldn't it?

What is the basic rule of trading again? Buy low, sell high.



Recently, Mark Dow, a preeminent hedge fund manager and skilled chartist, took to Twitter on Tuesday to make an unexpected declaration. In a tweet seemingly poking fun at crypto’s zealous bulls, Dow wrote that he would be saying goodbye to his Bitcoin (BTC) short, which he purportedly opened during the asset’s peak in late-2017.

In a phone interview with Bloomberg, the ostensible Bitcoin bear made it clear that his tweet wasn’t made in jest, adding that he was “done” with the position. Speaking to the outlet, Dow explained that he doesn’t “want to try and ride this thing to zero,” potentially indicating that he sees some semblance of value in BTC. Equating his anti-BTC forecast to a lemon, he stated:

“I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.”
The current head of a Southern California family office then explained that he already took profits twice this year, making the covering of his controversial short more than logical, especially from a risk management standpoint.

Just a few weeks later, Dow has taken to Twitter again, this time to paint a bearish picture for BTC’s prospects, specifically from a technical analysis outlook. The American economist recently wrote that BTC’s chart remains “beautiful,” but noted that if the asset cannot breach the $5,000 or $6,000 prices levels in a bounce, “cyberbulls” will be in for a tough time.

Read in full https://ethereumworldnews.com/bitcoin-under-3200-hodlers-gtfo-bearish/

[susila_bai]

I am not able to get what you want to tell, Title says that sell your coins when market goes below $3200 level and in comment you are telling it is oversold and it wont go below $3200 level. Even their are persons who have cleared his short position as he thinks that market will bounce back.

[bbc.reporter]

@susila_bai. Read the title well. It has says bear trader.

Also, similar to what I do when I post a thread about an article, I like questioning them and start a conversation. We should not automatically trust what the news tell us, I reckon. Some of them might be paid for by people with self interests or written by corrupt journalists.

Also, I did not say it will not go below $3200 level. I said that it might be the right time to buy below that level. Improve your reading skills.

[figmentofmyass]

I am not a technical analysis expert, however, bitcoin would be oversold under $3200 and it would be the right time to buy than to sell, wouldn't it?

"overbought" and "oversold" aren't as intuitive as they sound. in a downtrend, an oversold condition mostly just indicates that bearish momentum is really strong. on higher time frames, i've seen momentum and stochastic indicators oversold for weeks and months at a time. so taken alone, they're not buy signals.

i disagree with the trader though. we can stab below $3200 or $3k. the important thing is that buyers step in strongly and reject it. like we saw in january 2015. if i see a move like that again, i'll be confident the bear market is over.

[pooya87]

I am not a technical analysis expert, however, bitcoin would be oversold under $3200 and it would be the right time to buy than to sell, wouldn't it?

What is the basic rule of trading again? Buy low, sell high.

you can look at it in two different ways and neither of them would tell you to "sell" below $3200!
1. as an investor who is looking to buy the dips, you BUY if price goes lower specially closer to the support level at $3000 and even as a day trader that still is a chance to buy there
2. as a more scared/cautious approach you see $3200 as a risky price but you still don't know if it goes any lower because it is not breaking any support and there is no drama going on either. so you do NOTHING instead of buying or selling. instead you wait to see what happens and when the next step's direction became clear you act on it.

[davis196]

This bearish trader just preaches it's bearish shit.If somebody like this guy tells you what to do with your coins,you should do exactly the opposite of what he says.
Holders shouldn't get out if BTC falls under 3200 USD,they will lose money if they do so.
Next year,there will be plenty of lemons to squeeze.

[STT]

Its very likely to reach 6000 levels just because that was the base for so long, the support becomes resistance and also has a magnetic pull to it as so many are focused on speculation around that point.

That doesnt mean I must be bullish just certain points are more likely from its price history.

he would be saying goodbye to his Bitcoin (BTC) short, which he purportedly opened during the asset’s peak in late-2017.

Seems summer 2017 was way too early and he suffered alot as a short if he simply put it in at that level.   If he scaled into a short over many months, I guess that makes more sense and he had more guts then just guessing.

Being early like that is pretty deadly for calling a good bet, there was no options back then so he couldnt have hedged so easily.      If he repeats that mistake then he is calling this too early again and BTC is volatile enough to get to 6000 and surprise him maybe

[arpon11]

I am not a technical analysis expert, however, bitcoin would be oversold under $3200 and it would be the right time to buy than to sell, wouldn't it?

What is the basic rule of trading again? Buy low, sell high.



Recently, Mark Dow, a preeminent hedge fund manager and skilled chartist, took to Twitter on Tuesday to make an unexpected declaration. In a tweet seemingly poking fun at crypto’s zealous bulls, Dow wrote that he would be saying goodbye to his Bitcoin (BTC) short, which he purportedly opened during the asset’s peak in late-2017.

In a phone interview with Bloomberg, the ostensible Bitcoin bear made it clear that his tweet wasn’t made in jest, adding that he was “done” with the position. Speaking to the outlet, Dow explained that he doesn’t “want to try and ride this thing to zero,” potentially indicating that he sees some semblance of value in BTC. Equating his anti-BTC forecast to a lemon, he stated:

“I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.”
The current head of a Southern California family office then explained that he already took profits twice this year, making the covering of his controversial short more than logical, especially from a risk management standpoint.

Just a few weeks later, Dow has taken to Twitter again, this time to paint a bearish picture for BTC’s prospects, specifically from a technical analysis outlook. The American economist recently wrote that BTC’s chart remains “beautiful,” but noted that if the asset cannot breach the $5,000 or $6,000 prices levels in a bounce, “cyberbulls” will be in for a tough time.

Read in full https://ethereumworldnews.com/bitcoin-under-3200-hodlers-gtfo-bearish/

I think the rule is right that is buying low and selling high and many expert has said the bottom is around $3000. Therefore,  we should trying and buy around that level as bitcoin might not go down beyond that level.  Remember that if you can follow the rules you will win the game and that means investing at the right time is what we need to do to really make money.

[Slow death]

in my opinion, reading this article seems to me that this guy is giving his opinion based on some kind of frustration, we should not take to what he is saying because he is speaking based on feelings.

This bearish trader just preaches it's bearish shit.If somebody like this guy tells you what to do with your coins,you should do exactly the opposite of what he says.
Holders shouldn't get out if BTC falls under 3200 USD,they will lose money if they do so.

I agree

[buwaytress]

Not sure there's any more reasoning for oversold at this point, to be honest. Big picture wise, to me, the entire crypto market is oversold and has been in that territory for a long time now, but that's no longer any motivation for people to buy in the short/medium term because they're not willing to ride out months of the storm, if not multi-year.

So yeah, it could fall further back down below $3k and there's certainly a lot of selling momentum waiting in the wings. More power to the buyers and holders then. And the culling of weak hands continue.

[exstasie]

Not sure there's any more reasoning for oversold at this point, to be honest. Big picture wise, to me, the entire crypto market is oversold and has been in that territory for a long time now, but that's no longer any motivation for people to buy in the short/medium term because they're not willing to ride out months of the storm, if not multi-year.

So yeah, it could fall further back down below $3k and there's certainly a lot of selling momentum waiting in the wings. More power to the buyers and holders then. And the culling of weak hands continue.

Overbought/oversold are only useful signals in range markets where you should generally buy when it's oversold and sell when it's overbought. During a trend, it doesn't work like that. Oversold in a bear market screams "stay on the sidelines" or "short the bounce" to me. It means bears are in control.

In times like these all you can really do is wait for bulls to make a stand.

[LFC_Bitcoin]

Not sure there's any more reasoning for oversold at this point, to be honest. Big picture wise, to me, the entire crypto market is oversold and has been in that territory for a long time now, but that's no longer any motivation for people to buy in the short/medium term because they're not willing to ride out months of the storm, if not multi-year.

So yeah, it could fall further back down below $3k and there's certainly a lot of selling momentum waiting in the wings. More power to the buyers and holders then. And the culling of weak hands continue.

If we do go sub $3,000 just use it as an opportunity to load up & increase your bitcoin stash. As long as people aren’t desperare for quick profits then bitcoin is the best investment around in mumy opinion.

I think it’s pretty certain we’ll go north of $10,000 within a year or two so now is a great tike for accumulation.

[magneto]

I am not a technical analysis expert, however, bitcoin would be oversold under $3200 and it would be the right time to buy than to sell, wouldn't it?

What is the basic rule of trading again? Buy low, sell high.



Recently, Mark Dow, a preeminent hedge fund manager and skilled chartist, took to Twitter on Tuesday to make an unexpected declaration. In a tweet seemingly poking fun at crypto’s zealous bulls, Dow wrote that he would be saying goodbye to his Bitcoin (BTC) short, which he purportedly opened during the asset’s peak in late-2017.

In a phone interview with Bloomberg, the ostensible Bitcoin bear made it clear that his tweet wasn’t made in jest, adding that he was “done” with the position. Speaking to the outlet, Dow explained that he doesn’t “want to try and ride this thing to zero,” potentially indicating that he sees some semblance of value in BTC. Equating his anti-BTC forecast to a lemon, he stated:

“I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.”
The current head of a Southern California family office then explained that he already took profits twice this year, making the covering of his controversial short more than logical, especially from a risk management standpoint.

Just a few weeks later, Dow has taken to Twitter again, this time to paint a bearish picture for BTC’s prospects, specifically from a technical analysis outlook. The American economist recently wrote that BTC’s chart remains “beautiful,” but noted that if the asset cannot breach the $5,000 or $6,000 prices levels in a bounce, “cyberbulls” will be in for a tough time.

Read in full https://ethereumworldnews.com/bitcoin-under-3200-hodlers-gtfo-bearish/

Yeah, it doesn't make any sense. I believe that bitcoin will hit levels below $3.2k again, because of the bearish sentiment that is still within the market.

Usually, a sell target is one that is close to the expected peak of a rally, not one that is lower than your entry price. It's absurd to think that this type of trading will be profitable, let alone a sustainable investing strategy in the long run.

It's essentially adopting the mindset of panic dumpers, which very rarely make profits.

What should be done during this bear market if you do have the liquidity to spare would be to accumulate BTC on a regular basis which ensures that your entry price is low, while the rest of the market is panicking. Mark Dow closing his short may not necessarily be anything fundamentally tangible, but it does send a signal to the rest of the market what rational investors should be doing.

[gentlemand]

So this guy is telling people to sell at an absolute low. If I were employing him in my family office I would double check he was busy screwing with the minds of others. If he wasn't I'd probably push him off my Chippendale chair and tell him to go find a job elsewhere.

[cryptocrusher]

I guess the premise behind this is that $3200 will be a strong support and if it breaks it could be similar to the $5800 support breaking where we see 50% value wiped off in a short period of time. I don't think it says much for the long term. If $3200 breaks I would argue it's a good time to try sell your position and buy back again at a lower support level.

[jossiel]

It came from his mouth that the charts were beautiful. It is an indication that everyone should stand straight and dont let someone ruin their plan of action by staying and holding.

There is a possibility that it will go back to $3200 but dont listen to any mainstream news. When they tell you to sell, they are buying and when they tell you to buy, we should start selling.

[Kevin77]

Honestly I got out already because I think bitcoin is not looking great for the short term. However I do not mean short term like 6 months or something, I just mean the next week or so. I will probably get back into bitcoin at around 5th of January or so depending on the price.

So far after I sold price has fallen and I am really happy about my decision, if the price stays the same than I will definitely buy back with all the money I have or at least keep buying for couple days in a row waiting for a move. I will probably but some buy orders and sell orders in order either buy while its going up or sell if its going low. Those type of moves are really important on a volatile investment like bitcoin, if you buy at 3600 than you should sell at around 3500 or at least 3480 or so, because that means it will go even lower, if you want to buy right now put a buy order at 3780 or so because that means it will go higher as well.

[o_e_l_e_o]

skilled chartist

You might as well write "skilled fortune teller" or "skilled psychic" as far as I'm concerned. If he is so skilled to think bitcoin is going to drop to $3k, then surely he should be advising everybody to sell now and then buy at $3k, no? Why would he be telling people to sell at a low? Isn't this basic trading 101? Buy low, sell high?

I mean, I also think bitcoin might well drop below $3k, but I'll be taking that opportunity to stock up, not panic sell.

[El duderino_]

when someone advice is to sell when the price is on its lowest point.... then i just think some FUDcoolaid is being brew right there
for hodlers and buyers @these prices DON'T DRINK IT !!!!

[exstasie]

skilled chartist

You might as well write "skilled fortune teller" or "skilled psychic" as far as I'm concerned. If he is so skilled to think bitcoin is going to drop to $3k, then surely he should be advising everybody to sell now and then buy at $3k, no? Why would he be telling people to sell at a low? Isn't this basic trading 101? Buy low, sell high?

I mean, I also think bitcoin might well drop below $3k, but I'll be taking that opportunity to stock up, not panic sell.

Conventionally when a major support level is lost, one should expect a new downtrend to form. That's because everyone who bought above the support is now a bagholder who is pressured to cut losses.

The OP is pointing to the 200-week MA as a major support, evidenced by the bottom this month. His overall assumption is correct IMO, but the problem is merely dipping below support isn't enough to confirm it's broken. The market is prone to liquidity vacuums so temporary price extremes are normal. You need more evidence, like a strong candle close below the 200-week MA.

In a downtrend like this, I prefer to sell bounces when I see buying exhaustion rather than waiting for support to break. Shorting near support is always a gamble, and waiting for confirmation can mean waiting until price is $500 or $1,000 lower.