Trader Killa said he does not expect Bitcoin to set another lower low and is still holding a long position. At the same time, he warned that some de-risking could still emerge after the U.S. midterm elections, which in his view makes this an unsuitable moment to open hedge shorts in advance. Killa pointed to past U.S. midterm election cycles, saying Bitcoin has historically shown weaker performance after the vote. Even so, he argued that traders should not short purely on the basis of that pattern. If Bitcoin continues to rise before the election, he said market participants can wait until the event draws closer and then decide whether to act based on price action at that time. For now, his preferred approach is to keep long exposure, watch how the market reacts around the election window, and only then consider whether hedge shorts are needed.
According to ChainCatcher, well-known trader Killa said he does not think Bitcoin will print another new low and that he is still maintaining a long position.
He added that the market could still see some de-risking after the U.S. midterm elections, so he does not view this as the right time to open hedge shorts in advance.
How he is approaching the midterm election window
Killa said Bitcoin has historically tended to perform weakly after every U.S. midterm election cycle. Still, if Bitcoin keeps rising ahead of the election, traders can wait until the midterms are closer and then decide whether to act based on price movement at that point.
In his view, the more reasonable strategy for now is to keep long exposure, watch the market reaction before and after the midterm elections, and then consider whether to put on hedge shorts, rather than shorting early based only on the historical cycle.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
