- A trader executed a full-size short position on WIF based on short-term Bitcoin movements, despite USD pairing not reaching the target.
- The trader's strategy involves taking profit in the "green zone" but ultimately aims for WIF to decline below $1.
- This trade demonstrates the importance of monitoring multiple market pairings and using short-term movements in major assets like Bitcoin to inform broader trading strategies.
A trader recently disclosed a carefully planned short position on WIF, a cryptocurrency, after observing market conditions over the past week. The trader confirmed that they have increased their position, entering a full-size short. While the USD pairing has not yet reached the trader’s short target, the BTC pairing has already hit the upside target, prompting the decision to execute this position based on short-term movements in Bitcoin.
Short Position on WIF
The trader has stuck to his guns with his short position for WIF, blaming a BTC pairing for achieving the targeted upside. Although the USD pairing failed to reach the intended short target by a whisker, the trader was optimistic about the contest. Based on the analysis provided herein, short term momentum in the Bitcoin price was sufficient to create the right conditions for taking the full short position on the WIF.
Key Insights on WIF ,Strategy and Profit-Taking
Ahead of the trader pointed towards taking profit inside the green zone, which has a bounce back signal. I assigned the ‘green zone’ to the critical level where market odds remain in temporary favor. Still, as we have explained, the potential bounce is not what the trader is after and their goal is to see WIF decline once more below $1 targeting the range lows more generally.
The current setup has been in the making more than a week and this shows the trader’s willingness to wait for formation of the right market. These specifically include the increase in market volatilities in the interactions between WIF/BTC and its underlying cryptographic technology, Bitcoin.
This trade shows the need to track many market pairings and use short-term orientation in heavily weighted assets such as Bitcoin as a way of triggering more general trading strategies.
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