Well-known trader Killa said he does not expect Bitcoin to set a fresh low and is still holding a long position. In his view, the more relevant risk window may come after the U.S. midterm elections, when parts of the market could shift into de-risking mode. That is why he does not see this as the right time to open hedge shorts in advance.
Killa also pointed to a historical pattern: in every U.S. midterm election cycle, Bitcoin’s performance after the election has been relatively weak. Even so, he argued that traders should not short solely on the basis of that cycle history. If Bitcoin continues to rise before the vote, he said, traders can wait until the election 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 midterm election, and only then reassess whether hedge shorts make sense.
According to BlockBeats, trader Killa said on Oct. 4 that he does not believe Bitcoin will make another new low and that he is still maintaining a long position.
Killa wrote that the market could still see some de-risking after the U.S. midterm elections, which is why he does not view the current moment as a suitable time to open hedge shorts in advance.
He also said that in every historical U.S. midterm election cycle, Bitcoin has shown relatively weak performance after the election. If Bitcoin keeps rising before the vote, traders can wait until the midterms are closer and then decide whether to act based on price moves at that point.
In his view, the more reasonable strategy for now is to stay long, watch the market reaction around the midterm elections, and then consider whether to put on hedge shorts, rather than shorting early based only on historical cycle patterns.
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