What To Do with BTC’s Price Decline
Bitcoin Market Advice for 17 December 2014
Last week we announced our expectation that Bitcoin value was in decline. Those following our recommendation should now be short a small or 1/3 position, taken just below the $342 level. We do not anticipate the market holding at $310. Rather we are expecting a push below $300 to retest the lows established in October.
Do NOT add to this short position at these levels (the market is at $320 as we write this) as our central thesis is that this is still longer term base forming. Plan to cover the small short position at the $290 level if the market gets down to that point.
On the upside, plan to cover the short position and go long a 50% position if the market breaks above $360; if this happens we expect the market to be wrong-footed and could a see significant number of traders covering their shorts. Unless this happens stay short and look to flatten out at $290 as described above.
First Global Credit Management