Analysis after the Bitcoin-Halving: Possibility of a Short Squeeze in Crypto Markets
Bitcoin’s price has been attempting to stabilize after halving, reaching $64,926.64 over the weekend, and slightly increasing to $66,500. According to crypto hedge fund QCP Capital, there are interesting observations regarding the post-halving scenario and the broader crypto market. Funding rates have cooled off, but some smaller cryptocurrencies are experiencing deeply negative rates, suggesting the potential for a short squeeze in altcoins and meme coins if risk appetite returns.
Here’s what it means for you:
After the halving event, QCP Capital’s latest report highlights that while Bitcoin’s price didn’t move much, historical data shows that it tends to rise 50-100 days after halving. This allows bullish investors to build long positions. There’s also talk about a potential short squeeze in the near term, led by altcoins and memecoins with negative funding rates. Additionally, Ethereum’s risk reversals are looking positive, indicating improved speculative sentiment.
QCP recommends bullish BTC positions using Extended Range Knockouts (ERKOs) for trading, as they offer attractive risk-reward ratios for long-term optimism. They suggest buying BTC at a discount of around $55,000, anticipating a surge post-halving. Options like the BTC Accumulator, expiring on September 6, 2024, with a $55,000 strike price and $80,000 upper barrier, provide further investment opportunities.
However, experts like Markus Thielen of 10x Research advise caution, foreseeing potential market weakness and a deeper correction in the coming months. Despite this, historical patterns indicate an exponential rise in Bitcoin’s price post-halving, providing hope for bullish investors.
Technically, Bitcoin presents mixed signals for price direction, with some indicators suggesting buying sentiment and others signaling short-term bearishness. Key support levels at $62,467, $53,650, and $39,169 are crucial for gauging buying interest and potential price movements.
Do you plan to hold or buy at this moment? Let us know.
Tags: Price Analysis