The post Post Bitcoin-Halving Analysis : Potential for a Short Squeeze in Crypto Markets appeared first on Coinpedia Fintech News
After halving, Bitcoin’s price has been attempting to stabilize after reaching $64,926.64 over the weekend, with a slight increase bringing it to $66,500. 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 points out that while funding rates have cooled off from high levels, some smaller cryptocurrencies are experiencing deeply negative rates.
This negative finding suggests the potential for a short squeeze, particularly in altcoins and meme coins, which could lead to upward price movements if risk appetite returns.
Here’s what it means for you:
Aftermath of Halving
In the latest report from QCP Capital, Bitcoin’s fourth halving was recently completed, but its price didn’t move much afterward. However, historical data suggests that Bitcoin tends to rise 50-100 days post-halving, allowing bullish investors to build long positions soon. There’s also talk about a potential short-squeeze in the near term, led by altcoins and memecoins with negative funding rates. Meanwhile, Ethereum’s risk reversals are looking up, hinting at improved speculative sentiment.
Bitcoin on a Double Edge Sword: Buy or Sell?
QCP recommends bullish BTC positions using Extended Range Knockouts (ERKOs) for trading, offering attractive risk-reward ratios for long-term optimism. They suggest buying BTC at a discount of around $55,000, anticipating a surge post-halving, particularly with options like the BTC Accumulator expiring on September 6, 2024, with a $55,000 strike price and $80,000 upper barrier.
However, experts like Markus Thielen of 10x Research advise caution. They foresee 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 indicators like EMAs and SMAs suggesting buying sentiment, while others like RSI and MACD signal short-term bearishness. Key support levels at $62,467, $53,650, and $39,169 are critical for gauging buying interest and potential price movements.
Will you hold or buy at this moment? Tell us.