After the long-awaited fourth bitcoin HalvingCryptocurrency hedge fund QCP Capital becomes a beacon of knowledge, providing an in-depth analysis of what the post-halving landscape could hold in the near term.
bitcoin Bulls Will Hold Larger Long Positions After Halving
on a monday transmission On Telegram, QCP offered a comprehensive analysis exploring the complexities of post-halving dynamics and providing projections on investor sentiment, industry trends, and technical developments.
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 increased dramatically in the last three events. If this pattern replicates, there are still a few weeks left for bullish btc investors to build a larger long position.
While Extended Range Knockouts (ERKO) offer attractive risk-reward ratios for long-term optimism, QCP Capital advises traders to use them to take bullish positions on btc. This is due to the company's continued substantial bitcoin call purchases that will expire at the end of the year and beyond.
The transmission said:
We continue to see continued large buying of btc calls expiring at the end of the year and beyond. We believe ERKOs offer a good risk-reward ratio if you have a long-term bullish view.
To build long btc positions in the coming weeks, QCP suggests buying btc at a deep discount to $55,000 before the usual post-halving exponential rise. This is in light of considering options like the btc Accumulator, which has a strike price of $55,000 and an upper barrier of $80,000 that expires in approximately 20 weeks.
Possible halving of short post-compression
QCP also highlighted the possibility of a small contraction in the short term, especially in alternative currencies and coins memes, which may lead to price increases if risk appetite returns. Some of these altcoins and memes have already experienced consistent negative funding rates of up to -100%.
Meanwhile, the speculative sentiment around ethereum has improved and risk reversals are trending upward, which could lead to short covering and return to leveraged long positions. As investors navigate this crucial turning point in bitcoin's trajectory, the company's emphasis can be a useful tool to aid decision-making and promote a better understanding of the dynamic cryptocurrency ecosystem.
On Friday night, the halving went into effect, cutting the number of new bitcoins issued. Due to the positive effects seen on previous occasions, the event is expected to catalyze significant gains for btc and the crypto market. With the impact of the halving event still being felt across the cryptocurrency industry, cryptocurrency investors are curious to know the ramifications and possible future paths of bitcoin.
Featured image from iStock, chart from Tradingview.com
