{"id":31000,"date":"2024-04-23T09:28:05","date_gmt":"2024-04-23T09:28:05","guid":{"rendered":"https:\/\/marketmakersjournal.com\/index.php\/2024\/04\/23\/altcoins-and-memecoins-poised-for-short-squeeze-following-btcs-4th-halving-qcp\/"},"modified":"2024-04-23T09:28:05","modified_gmt":"2024-04-23T09:28:05","slug":"altcoins-and-memecoins-poised-for-short-squeeze-following-btcs-4th-halving-qcp","status":"publish","type":"post","link":"https:\/\/marketmakersjournal.com\/2024\/04\/23\/altcoins-and-memecoins-poised-for-short-squeeze-following-btcs-4th-halving-qcp\/","title":{"rendered":"Altcoins and Memecoins Poised for Short Squeeze Following BTC\u2019s 4th Halving: QCP"},"content":{"rendered":"

The completion of Bitcoin\u2019s fourth halving has left traders and investors speculating about the short-term market dynamics.\u00a0<\/span><\/p>\n

While the spot price of\u00a0<\/span>Bitcoin<\/span><\/a>\u00a0saw a slight increase over the weekend, not much significant movement was observed immediately after the halving event, QCP\u00a0<\/span>wrote in a recent note on Telegram<\/span><\/a>.<\/span><\/p>\n

Historically, the three previous halvings resulted in a substantial surge in the spot price of Bitcoin, but this exponential growth took place approximately 50 to 100 days after the halving.\u00a0<\/span><\/p>\n

If this pattern repeats itself, Bitcoin bulls may have a few more weeks to accumulate larger long positions.<\/span><\/p>\n

QCP Expects Short Squeeze After Bitcoin Halving<\/span><\/h2>\n

<\/span>
\nIn the short term, analysts at QCP anticipate a potential short squeeze led by Altcoins and Memecoins.\u00a0<\/span><\/p>\n

These alternative cryptocurrencies have been experiencing persistent negative funding rates, with some reaching as low as -100%.\u00a0<\/span><\/p>\n

A short squeeze occurs when short sellers are forced to cover their positions, driving the price of the asset higher due to the sudden surge in demand.<\/span><\/p>\n

\u201cWhat we could see in the short-term is a short-squeeze led by Altcoins and Memecoins which have seen persistent negative funding.\u201d\u00a0<\/span><\/p>\n

Furthermore, QCP noted that\u00a0<\/span>Ethereum<\/span><\/a>\u00a0risk reversals have been normalizing to above -4%.\u00a0<\/span><\/p>\n

This improvement in speculative sentiment could trigger short covering and a resurgence of leveraged long positions in ETH.<\/span><\/p>\n

QCP: After BTC\u2019s 4th halving, we could see in the short-term is a short-squeeze led by Altcoins and Memecoins which have seen persistent negative funding , with some as deep as -100%. With ETH risk reversals normalising to above -4%, improving speculative sentiment could see\u2026<\/p>\n

\u2014 Wu Blockchain (@WuBlockchain) April 23, 2024<\/a><\/p>\n

QCP Trading Ideas<\/span><\/h2>\n

<\/span>
\nIn light of these market dynamics, QCP suggests two trade ideas.<\/span><\/p>\n

Firstly, for those with a structurally bullish view on BTC, QCP has noticed consistent large buying of BTC calls expiring at the end of the year and beyond.\u00a0<\/span><\/p>\n

They recommend exploring Extended Range Knockouts (ERKOs) as they offer an appealing risk-reward profile.\u00a0<\/span><\/p>\n

Two ERKO options put forward by QCP are the ERKO 27 Dec 2024 75\/150k and the ERKO 28 Mar 2025 150\/250k.\u00a0<\/span><\/p>\n

The former offers a maximum payout of 10.52 times the investment\u00a0<\/span>at a price of<\/span>\u00a07130 USD per BTC, while the latter presents an even higher maximum payout of 40 times the investment\u00a0<\/span>at a price of<\/span>\u00a02500 USD per BTC.<\/span><\/p>\n

Additionally, QCP suggests building BTC long positions in the coming weeks, capitalizing on a significant discount around the 55k level.\u00a0<\/span><\/p>\n

This strategy aims to take advantage of the anticipated post-halving exponential rally.\u00a0<\/span><\/p>\n

To implement this approach, QCP recommends considering a BTC Accumulator with an expiry date of 6SEP24, providing a 20-week timeframe.\u00a0<\/span><\/p>\n

The strike price is set at 55,000 USD, reflecting a discount of approximately 19.70% from the current spot price, while the upper barrier stands at 80,000 USD, offering a potential upside of 10.61%.<\/span><\/p>\n

As reported, digital asset investment products have faced another week of outflows, marking the second consecutive week of declining investor interest.\u00a0<\/span><\/p>\n

The outflows amounted to a\u00a0<\/span>total of $206 million<\/span><\/a>, while trading volumes in exchange-traded products (ETPs) experienced a slight dip.<\/span><\/p>\n

Bitcoin investment products witnessed outflows of $192 million.<\/span><\/p>\n

However, few investors viewed this as an opportunity for short-selling, with short-Bitcoin strategies experiencing outflows of $0.3 million.<\/span><\/p>\n

The post Altcoins and Memecoins Poised for Short Squeeze Following BTC\u2019s 4th Halving: QCP<\/a> appeared first on Cryptonews<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

The completion of Bitcoin\u2019s fourth halving has left traders and investors speculating about the…<\/p>\n","protected":false},"author":0,"featured_media":31001,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17],"tags":[],"class_list":["post-31000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy"],"_links":{"self":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts\/31000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/comments?post=31000"}],"version-history":[{"count":0,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/posts\/31000\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/media\/31001"}],"wp:attachment":[{"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/media?parent=31000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/categories?post=31000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marketmakersjournal.com\/wp-json\/wp\/v2\/tags?post=31000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}