Public trading strategy

Crypto investors pull $4 billion out of Bitcoin funds — short MSTR as panic spre

Thesis

Bitcoin is clinging to support as investors pull a record-breaking $4 billion out of crypto ETFs amid rising interest rate fears. When major crypto funds see massive outflows, it creates relentless downward pressure on Bitcoin's price. This weak crypto price action spells disaster for companies that hold massive amounts of Bitcoin, specifically Strategy (MSTR). Combining the bearish crypto ETF news with MSTR's eleventh losing month makes it clear this downward spiral has no immediate floor.

Strategy approach

Build a mean-reversion short strategy for MSTR on D1. Enter short when MSTR closes lower than the previous day for 3 consecutive days. Exit if MSTR closes above its 10-day high. Use a 15% hard stop loss and a maximum 21-day holding period.

Markets and timeframes

BITIMSTRD1

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