Following the much-awaited fourth Bitcoin Halving, cryptocurrency hedge fund QCP Capital becomes a lighthouse of knowledge, providing an in-depth analysis of what the post-halving landscape could hold in store in the short term.
Bitcoin Bulls To Hold Larger Long Position Post-Halving
In a Monday broadcast on Telegram, QCP offered a comprehensive analysis that explores the complexities of post-halving dynamics and provides projections for investor sentiment, industry trends, and technical advancements.
Related Reading: Crypto Pundit Says Bitcoin Halving Is A ‘Buy The News’ Event
QCP Capital noted that following the conclusion of the fourth BTC Halving, the spot price increased slightly over the weekend, but not significantly. According to the company, in just 50 to 100 days after the actual halving day, the spot price rose in the past three events dramatically. Should this pattern be replicated, there are still a few weeks left for BTC bullish investors to build up a bigger long position.
While Extended Range Knockouts (ERKOs) offer appealing risk-reward ratios for long-term optimism, QCP Capital advises traders to use them to take bullish BTC positions. This is due to the firm’s ongoing, substantial purchases of Bitcoin calls that will expire at the year’s end and later.
The broadcast read:
We continue to see consistent large buying of BTC calls expiring at the end of the year and beyond. We think ERKOs provide good risk-reward if you have a longer-term bullish view.
In order to generate BTC longs in the upcoming weeks, QCP suggests purchasing BTC at a steep discount at $55,000 ahead of the usual post-halving exponential upward surge. This is in light of considering options such as the BTC Accumulator, which have a $55,000 strike price and a $80,000 upper barrier expiring approximately 20 weeks from now.
Potential Short-Squeeze Post Halving
QCP also highlighted the possibility of a short squeeze in the short term, especially in altcoins and meme coins, which can cause price increases if risk appetite returns. Some of these altcoins and meme coins presently have already witnessed constant negative funding rates of up to -100%.
Meanwhile, speculative sentiment around Ethereum has improved, and risk reversals are trending upward, which might lead to short covering and return to leveraged long positions. While investors navigate this crucial turning point in Bitcoin’s trajectory, the company’s emphasis may be a useful tool that aids in decision-making and promotes a better comprehension of the dynamic cryptocurrency ecosystem.
Late Friday, the Halving went into effect, cutting the amount of new bitcoin issued. Due to the positive effects seen on previous occasions, the event is anticipated to catalyze significant gains for BTC and the crypto market. Given the halving event’s impact is still felt throughout the cryptocurrency industry, crypto investors are curious to learn about the ramifications and possible future paths of Bitcoin.
Featured image from iStock, chart from Tradingview.com
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