As I have said repeatedly, I can't predict the short term gyrations of an irrationally priced asset. It rose in price after I short sold resulting in notional losses. It then fell to $7,000 resulting in good paper profits. It's back up to $11,000 now. So my profits are reduced.
Short selling an irrationally priced asset is not like any other investment I have made. I made a decision to close out if it reached $34,500 and lick my wounds.
I am less clear at what price I would close out when it falls.
I ask myself the question: If I did not have a position in it, would I short sell Bitcoin at $3,000? The answer is probably not. The maximum gain is $3,000 by doing so, the potential loss is unlimited as it could well spike back up to $20,000 or even $40,000 en route to zero.
So maybe $3,000 is the close out position?
I did ask myself the same question at $7,000 but felt that the risk/reward ratio was still ok.
Brendan