Public trading strategy
Bitcoin bloodbath accelerates as investors flee crypto funds — short the ultimat
Thesis
Bitcoin is clinging to a critical $60,000 support level as investors pull a record $4.5 billion from Bitcoin ETFs due to rising Fed rate hike fears. Strategy (MSTR) acts as a highly leveraged bet on Bitcoin, meaning it amplifies Bitcoin's downward moves. With Bitcoin facing rare back-to-back quarterly losses and institutional money fleeing the space, MSTR is particularly vulnerable to further downside pressure.
Strategy approach
Build a mean-reversion short strategy on MSTR using a 1-day timeframe. Enter a short position when MSTR closes below its 50-day moving average and Bitcoin (BTCUSD) breaks below its recent 20-day support level. Exit if MSTR rallies 5% from the entry point or after a 14-day holding period.
Markets and timeframes
MSTRD1