TL;DR
- Following the fourth halving, speculations about the short-term market have begun.
- Previous halvings have resulted in a substantial increase in the price of Bitcoin, but this growth has occurred approximately between 50 and 100 days later.
- QCP anticipates a possible short squeeze led by altcoins and memecoins in the short term due to negative funding rates, which could drive prices higher.
After the completion of the fourth Bitcoin halving, speculations have begun among traders and investors about the dynamics of the short-term market. Although the price of BTC experienced a slight increase during the weekend following the event, no significant movements were observed immediately after the event.
Historically, previous halvings have resulted in a substantial increase in the price of Bitcoin, but this exponential growth has occurred approximately between 50 and 100 days later. This suggests that bullish investors who trust in BTC may have a few more weeks to accumulate larger long positions.
Possible Short Squeeze of Altcoins
However, analysts at QCP anticipate a possible short squeeze led by altcoins and memecoins in the short term. They have experienced persistently negative funding rates, some even reaching -100%. A short squeeze occurs when short sellers are forced to cover their positions, driving the price of the asset higher due to the sudden increase in demand.
QCP Suggests Different Bitcoin Investment Options
For those with a structurally bullish view of Bitcoin, QCP suggests exploring Extended Range Knockouts (ERKOs) options. Two highlighted ERKO options are ERKO 27 Dec 2024 75/150k and ERKO 28 Mar 2025 150/250k. These options offer an attractive risk-reward profile for long-term investors.
Additionally, QCP also recommended long positions in BTC in the coming weeks, taking advantage of a significant discount around the 55k level. To implement this strategy, they suggest considering a BTC Accumulator with a maturity date of 6SEP24, providing a 20-week timeframe. The exercise price is set at 55,000 USD, reflecting a discount of approximately 19.70% from the current price, while the upper barrier offers a potential upside of 10.61%.
Analysts predict a potential increase in volatility in the short term, especially led by Altcoins. Investors with a bullish view may consider QCP’s suggestions to capitalize on these market opportunities.
