Bitcoin - anybody short?
All we hear is that people love bitcoin volatility, that they are happy to be down 20, 30, 40%, that volatility is a must (although nobody is managing it well), that bitcoin gives you freedom etc.
These are all non arguments, and the only thing that matters is the p/l, by now in free fall for most "new believers".
P/L volatility to the upside is one thing, but p/l volatility to the downside is a different beast. Let's see where we go from here, but as we outlined yesterday, skew has exploded as people have bought puts in panic. This could be a short term signal for a needed pause, but much damage has been done. Note the 50/100 day moving average cross, as well as the fact we remain below the 200 day moving average.
Second chart shows Fibonacci levels worth keeping an eye on.
Despite everything having happened in crypto space, we still have not heard of people running big bitcoin shorts...
These are all non arguments, and the only thing that matters is the p/l, by now in free fall for most "new believers".
P/L volatility to the upside is one thing, but p/l volatility to the downside is a different beast. Let's see where we go from here, but as we outlined yesterday, skew has exploded as people have bought puts in panic. This could be a short term signal for a needed pause, but much damage has been done. Note the 50/100 day moving average cross, as well as the fact we remain below the 200 day moving average.
Second chart shows Fibonacci levels worth keeping an eye on.
Despite everything having happened in crypto space, we still have not heard of people running big bitcoin shorts...