Bitcoin/Ethereum: The one indicator making us nervous...

Ever thought about this ?

Author

Markus Thielen
November 13, 2024

👇1-12) The most challenging aspect of trading is deciding when to call a top while positioned for a parabolic move. Reducing long exposure may risk missing out on further gains, yet disciplined risk management remains essential for every trade. A prudent approach leverages market exuberance by strategically building portfolios that capture potential upside while actively managing downside risk, creating a more balanced and risk-aware strategy.

👇2-12) While portfolio management is a personal decision, tools like options (such as those on Deribit) or strategic trade construction can effectively balance portfolio risk.

👇3-12) Since September, we’ve been among the most vocal bulls, anticipating a major breakout based on robust market structure and flow data signals. Our technical analysis suggested that the seven-month consolidation phase had concluded by September, setting the stage for a potential price surge. Recently, we’ve observed a spike in retail trading activity and elevated funding rates as Bitcoin, among others, has indeed gone parabolic. While we remain bullish, there are a few key indicators that traders should keep an eye on.

Our CoinDesk TV interview from November 6 (here)

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