Can the market continue higher and make me look like a fool? Yes, it certainly can!
However, cashing in profits, especially after such a vertical run is a good strategy. I believe, it is time for Bitcoin investors to start booking partial profits on their investment positions. They will get ample opportunities to re-establish long positions at lower levels when the correction starts.
The introduction of Bitcoin futures trading in just a few days will bring forth a number of short sellers who are likely to bet against the incessant rally. For the first time, the Bitcoin bulls will be face to face with the bears, who will have the tools to short sell the cryptocurrency.
It is difficult to predict whether the short sellers will force price downwards leading to a long liquidation or the bulls will force a short squeeze from the bears. Considering the uncertainty, it is wise to reduce the risk.
Let’s see, when should one start selling the positions.
Since the low of $5450.86, on November 12, only one strategy has worked for Bitcoin, i.e., buy and hold. Traders who purchased at the lows are sitting on about 150% profits in less than a month.
However, I never anticipated such a stellar rally. I kept waiting for the dip or a consolidation that could provide an attractive entry opportunity, which never materialized…