How to manage Bitcoin longs? (part 2)
|This post is a follow up for those still long from the end of last year.
Sometimes a trade comes along that really hits it out of the park. When these trades come along you need to make sure that you make them count. Bitcoin longs are just such a trade. Even Bitcoin longs that were closed a long time ago ended up being the best trade of last year.
If you are currently long Bitcoin here are some thoughts on what to do. Markets, very rarely move in a straight line. So, when they show the sort of parabolic action like BTCUSD it generally makes sense to take profit at the highs of the move. Now, how do you know where the highs are? In reality, although you can look for technical clues, you don’t really know. However, current levels are very high prices and represent an excellent profit for anyone who bought in last year sub $20,000 or even at higher prices.
It can be easy to get caught in the BTCUSD hype and think that the only product to invest in right now is BTCUSD. In truth, BTCUSD is just one instrument out of many. You could consider closing some or all BTCUSD longs and moving it into lower-risk assets like the FTSE 100 or FTSE 250 which are less volatile. Whatever, you do here make this trade count. It needs to lift your bottom line and if you have hit a home run, there is no harm in putting your Bitcoin bat down and having a break.
HODL?
The other perspective is that BTCUSD is a phenomena change that will see $100,000 before it sees $20,000. If you are HODLER that is fine, just remember that a home run is a home run.
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