Bitcoin The price rose to $64,926.64 last weekend after the halving and is currently struggling to stay above $66,000. According to a recent market update from crypto hedge fund QCP Capital, there are notable observations regarding the post-halving scenario and the broader crypto market. QCP Capital notes that funding rates are falling from high levels, while some smaller cryptocurrencies are experiencing extremely negative rates.
This negative finding indicates the potential for a short squeeze, especially in altcoins and meme coins, that could lead to upward price movements if risk appetite returns.
Post Bitcoin Halving
According to QCP Capital’s latest report, Bitcoin’s fourth halving was completed recently, but there was no significant movement in its price afterwards. However, historical data shows that BTC tends to rise 50-100 days after the halving, allowing bullish traders to establish long positions in a short period of time. Additionally, altcoins with negative funding rates and meme coinThere is also talk of a potential short position squeeze in the near term, led by ‘s. As Koinfinans.com reported, Ethereum’s risk returns are upward, indicating that speculative sentiment is increasing.
QCP continued his report by recommending bullish BTC positions using Extended Range Knockouts (ERKOs) to trade, offering attractive risk-reward ratios for long-term optimism. They recommend buying BTC at a discount of around $55,000, expecting a post-halving upside, especially with options with a $55,000 strike price and $80,000 upper barrier, such as BTC Accumulator, which expires on September 6, 2024.
However, experts such as Markus Thielen of 10x Research advise caution. They predict potential market weakness and a deeper correction in the coming months. Despite this, historical models point to an exponential increase in Bitcoin’s post-halving price, giving hope to bullish investors.
Technically, Bitcoin is giving mixed signals for price direction, with indicators such as the EMA and SMA indicating buying sentiment, while others such as the RSI and MACD indicate short-term bearish sentiment. Key support levels at $62,467, $53,650, and $39,169 are critical to gauge buying interest and potential price movements.
