A Bitcoin short position based on Fibonacci levels and market sentiment is a trading strategy to profit from a price drop.
It involves:
1. **Technical Analysis:** Using Fibonacci retracement levels (e.g., 61.8%) to identify a potential price reversal point after a bounce.
2. **Sentiment Analysis:** Confirming the reversal signal by checking for "extreme greed" in the market, which suggests overbought conditions and an impending correction.
A trader enters a short trade when both signals align, expecting the price to fall from that key resistance level.
It involves:
1. **Technical Analysis:** Using Fibonacci retracement levels (e.g., 61.8%) to identify a potential price reversal point after a bounce.
2. **Sentiment Analysis:** Confirming the reversal signal by checking for "extreme greed" in the market, which suggests overbought conditions and an impending correction.
A trader enters a short trade when both signals align, expecting the price to fall from that key resistance level.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.