Do Not Short Bitcoin (BTC) in a High Time Frame, Analyst Explains Why

Bitcoin's (BTC) price volatility can offer both long and short opportunities for traders speculating on different time frames.

CrypNuevo Analysis Explains Why Bitcoin Short Trading Is Not Recommended At This Time.

The price of Bitcoin (BTC) is known for its high volatility, which offers both long and short opportunities for traders speculating on different time frames. However, one analyst reviewed the Bitcoin price chart, explaining why shorting Bitcoin is not a good idea at this time.

In a video published on October 18, CrypNuevo first analyzed Bitcoin on a high (HTF) and low (LTF) time frame. While LTF is more volatile and may offer some short opportunities for day traders and scalpers, he suggested that swing traders should avoid going short as indicators indicate that BTC will continue to climb.

The analyst also looked at the Bitcoin Dominance Index (BTC.D), marking a dominance of 59% at the time of recording. We can see that Bitcoin was trading at around $68,800 while the video was being recorded.

Do not open short Bitcoin trades on a high time frame

Looking at the weekly and daily price chart, the analyst explained that BTC is in a HTF bull market. More specifically, CrypNuevo pointed to the 50-week exponential moving average (1W 50EMA) as a leading indicator of market cycles.

Finbold illustrated the analyst's thesis on the weekly price chart, showing how the 1W 50EMA clearly marked each cycle. As noted, a break above the line would mark the beginning of a bull market, while a break below it would signal a bear market.

At this point, BTC is trading strongly above the key moving average, which CrypNuevo sees as the main price support moving forward. Therefore, opening a short position for Bitcoin swing trades here would offer poor risk-reward ratios against the bullish HTF momentum.

BTC was trading at $68,550 at the time of publication, slightly lower than when the video was recorded.

Bitcoin bull breakout on lower time frames

The analyst also looked at lower time frames, for example, with the four-hour and one-hour price charts. However, the most relevant LTF chart will be the one-day time frame, given that he posted the video two days ago.

Interestingly, CrypNuevo highlighted a bullish breakout from the seven-month bearish channel, aligned with what it expected for a channel breakout. According to the analyst, the channel resistance for the bullish breakout will not occur immediately after the channel support is touched.

In fact, his experience predicted a resistance test followed by a 50% range pullback, setting the stage for a breakout. That's exactly what happened in early October, retreating to the middle of the channel, breaking through on October 15.

Key Levels

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