Bitcoin will return to highs of US$74,000, bullish momentum to sustain: QCP Capital

Last updated: May 16, 2024 09:01 EDT | 2 minutes reading

Major trading firm QCP Capital has expressed optimism about Bitcoin price dynamics, predicting a potential return to highs of $74,000.

Bitcoin will return to a high of US$74,000

On a recent notethe company said it has observed substantial buyers purchasing 100,000 to 120,000 BTC calls for December 2024, indicating confidence in the cryptocurrency’s upward movement.

“US CPI numbers triggered a breakout in the risk asset range. Since then, BTC has traded above 66K,” the company wrote.

The rise in spot prices coincided with increased institutional demand, with prominent asset managers Millennium and Schonfeld allocating approximately 3% and 2% of their assets under management (AUM) to BTC spot ETFs.

QCP Capital highlights several factors that align favorably for Bitcoin’s advancement, including growing sovereign and institutional adoption, easing inflation concerns, and the upcoming US elections.

These factors, combined with the recent price movement, have generated speculation about the resumption of the bull market.

QCP Capital offers two trading ideas

In light of this optimistic outlook, QCP Capital offers two trading ideas for investors looking to capitalize on a potential uptrend.

The first is the June Seagull strategy, which involves selling a 60,000 put option and at the same time purchasing a 70,000 call option with a knock-out level of 88,000.

This trade can be executed at zero cost, and if the BTC spot price approaches 88,000 at expiration, it could generate a maximum payout of $18,000 per BTC, equivalent to a 249% annualized return.

The second trading idea presented by QCP Capital is the August Seagull strategy, which involves selling a 58,000 put and buying a 70,000 call with a knock-out level of 100,000.

Similar to the June Seagull, this trade can also be executed at zero cost. If BTC’s spot price reaches just under 100,000 at expiration, investors can enjoy a maximum payout of $30,000 per BTC, representing a potential annualized return of 176%.

Galaxy Digital founder expects Bitcoin to trade in narrow range

Despite QCP’s bullish view, Michael Novogratz, founder of Galaxy Digital Holdings, a leading digital asset financial services company, expects Bitcoin to remain in a relatively narrow trading range in the current quarter.

As reported, he expects Bitcoin to remain in the roughly $55,000 to $75,000 range until specific market events or circumstances drive prices higher.

Novogratz mentioned the tailwinds experienced in the fourth quarter of last year and the first quarter of this year.

“I think that’s probably where we’ll be this quarter, maybe next quarter until A, the Fed starts cutting rates because the economy finally slows down, or B, we get through the election and I think the election will bring clarity one way or another. the other for the crypto regulatory landscape.”

On the other hand, technical analyst Rekt Capital believes that Bitcoin has emerged from post-halving “danger zone” and entered an accumulation phase, as indicated by weakening selling pressure.

“Bitcoin’s post-halving “danger zone” (purple) is officially over,” the popular cryptocurrency trader wrote in a recent post on X.

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