BITI: One Of The Easiest And Lowest-Risk Ways To Short Bitcoin

I have a very useful and successful momentum formula that just flipped to a buy signal on ProShares Shrt Bitcoin ETF (NYSEARCA:BITI).

BlackJack3D

I have a very useful and successful momentum formula that just flipped to a buy signal on ProShares Shrt Bitcoin ETF (NYSEARCA:BITI). This fund uses futures contracts to create a short position that will benefit owners if Bitcoin declines.

So, if you are bullish on Bitcoin falling, then you might want to consider a trade on BITI ETF. This ETF is designed to deliver the inverse (opposite) daily performance of the Bitcoin futures index, before fees and any other expenses.

The ETF will use a sampling strategy to select the front month Bitcoin futures contract and the second through fourth calendar months for a total of four futures contracts. The weights will be based on the time to expiration of each futures contract. This ETF will pay out a dividend yield of 0.8%.

BITI ETF Snapshot

Chart snapshot from TradingView

Technical Analysis

We can see that BITI ETF had a strong rally off the lows in 2023. The ETF has now rallied over 50% from the lows and is approaching key resistance. If we get a strong breakout over this resistance level, then we could see a continuation of the rally towards the prior highs.

Momentum is now bullish on BITI ETF, and we have a buy signal from my formula. The ETF is also approaching a key resistance level, which could lead to a breakout and further upside momentum.

Tips for ETF traders

Use a scanner to find ETFs that are approaching key technical levels.

Scan for ETF’s that are showing relative strength or weakness.

Use momentum indicators to identify ETF’s that are showing signs of building bullish or bearish pressure.

Keep an eye on the overall market trend and adjust your ETF trading strategies accordingly.

Good Luck!