The price of Bitcoin (BTC) fell off a cliff early Sunday morning — but don’t say we didn’t warn you. (Twice.) Now, is the best play to do nothing?

Daily Chart

Bitcoin tanked almost instantly from above $4100 to the 50-day exponential moving average (EMA), where it immediately found support. This has provoked some savvy traders to take out a long position, but such a bold gamble is not without risk.

Taking a long position in a bear market can certainly be profitable, but it is akin to swimming upstream. When the macro trend is down, buying or longing Bitcoin is to go against the overall trend of the market — which has been firmly down over the last 14 months.

Indeed, a convincing and profitable bounce off of the 50-day EMA is possible, but only traders willing to stomach a large amount of risk should take such a bet and stop…

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