Short Trade!

[FortuneFollower]

Depends what you're shorting

For instance, I wouldn't short bitcoin because it's a "mostly up" asset, which means that it eventually trades higher after a correction, so you can blindly buy it at any point in time and eventually make money, while you can't do it the other way round. When it comes to shitcoins though, situation is much different as they mostly trend down. Just look at every single altcoin that's been around for more than 5 years. It has its pumps but after a while it ends up lower and lower. If you have time and money and don't get too much leverage you can play around shorting the altcoin market.

Anyway, in an illiquid market longs and shorts tend to get liquidated every few days, so you either catch a good move or you get fucked, there's nothing in between.

I think that if OP wants to open short position, Bitcoin is not the most dangerous option. The price of Bitcoin has reached 70K, the market capitalization has significantly increased, it can't be as volatile as it was years ago, it can't go from 70K to 700K or 1 Million this time. I think that Bitcoin is the best candidate for short sell but altcoins are very volatile and dangerous for this approach.

Anyway, I suggest OP to not short trade because this is very dangerous. You will be playing with fire. What if you short sell and price goes up from 1k to 2k? 3K? You'll get liquidated. I suggest you to invest in coin that you believe will rise long-term and relax.

I agree.
Now BTC just did what you said - went from $72k to $69k. Why exactly?
There are many reasons for it playing out, however, the corrections will still be in place on the path of breaking the ATH, in my opinion.

[betswift]

Depends what you're shorting

For instance, I wouldn't short bitcoin because it's a "mostly up" asset, which means that it eventually trades higher after a correction, so you can blindly buy it at any point in time and eventually make money, while you can't do it the other way round. When it comes to shitcoins though, situation is much different as they mostly trend down. Just look at every single altcoin that's been around for more than 5 years. It has its pumps but after a while it ends up lower and lower. If you have time and money and don't get too much leverage you can play around shorting the altcoin market.

definitely agreed with this, altcoins in general always hits ATH and then went downhill forever until only 10% of its value remains, I've seen plenty, TIA included, at some point I think shorting altcoins at peak couldn't be a more effective strategy since they have this tendency of being abandoned by the market.

it's quite opposite with BTC where the long term outlook always growing linearly. definitely some dump and pump along the way but the general outlook always looks linear.



so the conclusion is, if we are shorting, be sure to only short the shitty altcoin that is valued so high because of temporary hypes.

Yeah, or to look at the situation more deeply than the overall opinion on the coin and its cycles.
BTC, for example, now just dumped a bit - but it's okay in the long run, of course, in my opinion.
These 2-3k won't matter in the long run.

[liasbaa]

Short selling in bull run can be dangerous, but still when I see a resistance zone I can't stop myself from short selling! what yours opinion in this case? Should I continue short selling in this bull run, or should prevent myself from doing this?

Short selling is a very risky maneuver especially in this market and under the current circumstances, since you do not really know when the price could go up all of a sudden and your position could become heavily compromised, especially if you were to use leverage as well, so if you are going to do it anyway I will recommend that you use a stop loss and that you abide to it, otherwise your losses could grow very quickly if there is a positive news and the market reacts to it.

Instead of keeping yourself with risky strategies, you should plan your investment with a strong financial investment so that the level of risk can be reduced relatively. Your stop loss concept can be very helpful if traders plan accordingly. But I would say try to keep yourself busy with buying in downtrends and getting a holding trend.

[shinratensei_]

Yeah, or to look at the situation more deeply than the overall opinion on the coin and its cycles.
BTC, for example, now just dumped a bit - but it's okay in the long run, of course, in my opinion.
These 2-3k won't matter in the long run.

indeed, current retracement is just small retracement, 2-3k dumping is nothing, we've been to the time where BTC just dumped from $74k to $54k, might seem so scary but the long term outlook eventually we return back to above $70k again.

this is also the reason why spot is more preferable than futures with leverage, we can just ignore it and BTC price grow on its own, recovers back to previous level.

shorting BTC always a bad deal, considering it just keep going back to the rainbow price chart indicator, rarely deviates from it .

[South Park]

I agree.
Now BTC just did what you said - went from $72k to $69k. Why exactly?
There are many reasons for it playing out, however, the corrections will still be in place on the path of breaking the ATH, in my opinion.

Many newbie traders do not really understand that the markets do not move linearly, they expect that once they buy an asset, this asset will keep going up indefinitely and this is an impossibility, markets move up and down all the time and most of the time you are not going to find a logical explanation about why this was the case, however if you instead take a more long term approach to the markets you will see that bitcoin despite those short term variations, it goes up in value after each 4 year cycle, and this is what makes it such an amazing investment.

[Olatundespo]

I agree.
Now BTC just did what you said - went from $72k to $69k. Why exactly?
There are many reasons for it playing out, however, the corrections will still be in place on the path of breaking the ATH, in my opinion.

Many newbie traders do not really understand that the markets do not move linearly, they expect that once they buy an asset, this asset will keep going up indefinitely and this is an impossibility, markets move up and down all the time and most of the time you are not going to find a logical explanation about why this was the case, however if you instead take a more long term approach to the markets you will see that bitcoin despite those short term variations, it goes up in value after each 4 year cycle, and this is what makes it such an amazing investment.

From a complete cycle the investor can get profit with his capital but he has to run savings regularly which can be a bit unpredictable for many. An investor can diversify his business in the later periods of the cycle through long-term savings. By logically buying out of bounds between price rises, you can create a holding process such that the amount you regularly save by buying more in a downward price trend is likely to get a large holding before the cycle ends. To grow wealth you need to increase liquidity and continue to save for long term.