Bitcoin Trade Update: Fear of Heights.

Hi traders, I am still hedged in cash on most exchanges. Not buying back into BTC just yet.

Here's why...

• The price has gone parabolic and a correction is overdue, at some point the big players will take some profit which could trigger a wave of dumps and panic-selling; remember: most of the new money in the market (people who entered at $4000 and above) have never experienced a Bitcoin bear market and will be the first to panic-sell in case we start to break down;

• The Stochastic RSI has crossed over the "oversold" line (faint grey-ish line at the top) on both the weekly (left) and daily (right) charts which usually signals an exhaustion of the bulls;

• To add to that, although the price is creeping back to $12,000, the volume looks weak;

• Finally, we could have a potential "sell on the news" event before December 18th when the CME Bitcoin futures go live.

HOWEVER,

If the bulls take control of the market yet again and we start making new highs, then the following scenario could play out:

• We push to the next fib levels north: $12,500 then $15,000 where you can expect more selling.

What I'd like to warn you about is not to over-trade and to keep some $$ firepower on exchanges in case we get a dump so you'll be able to buy a dip, possibly around the $8000 area. At these very high levels, it's better to wait for the market to make a clear move before getting into a trade and right now, a case could be made that both scenarios are 50/50, although I personally lean towards a correction.

For the love of God, be careful, manage your position-size and don't use leverage so you don't get wiped out.

Where do you think Bitcoin is going?

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Cheers,