In the eventuality of Bitcoin’s 4th halving, the crypto space is still cautiously bullish, with market players seeking potential opportunities for both Bitcoin (BTC) as well as alternative cryptocurrencies (Altcoins). Recent BTC’s halving completion on 19th April triggered a discussion on the outlook for future market movements and trade strategies, according to the QCP report.
Historically, after every single previous halving, BTC’s spot price surged upwards significantly. However, there has been rather little price action after this halving season, which has caused some speculation over the near-term prospects. According to analysts, a short squeeze may be imminent involving Memecoins and Altcoins marked by continuous negative funding rates. Of note is that there have been a few Altcoins whose funding rates have gone as low as -100%.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is also undergoing a normalization of risk reversals, indicating an improvement in speculative sentiment. This development could potentially trigger short covering and a resurgence of leveraged long positions in the market.
Considering these developments, traders are evaluating various trade ideas to capitalize on potential market movements. According to QCP, one strategy involves maintaining a structurally bullish outlook on BTC by acquiring long-dated call options. Options like ERKO December 27th, 2024, and ERKO March 28th, 2025, offer attractive risk-reward profiles for those with a longer-term bullish view of BTC’s price trajectory.
Experts propose a strategic approach of steadily acquiring Bitcoin positions in the forthcoming weeks, specifically targeting price points around $55,000, in anticipation of an expected post-halving exponential price surge. Financial instruments like the BTC Accumulator, expiring in September 2024, present an opportunity to establish long positions at a discounted rate while incorporating a predefined upper limit for potential profit realization.
Navigating Altcoin Highs Amid Bitcoin’s Rebound
Meanwhile, Altcoin markets are witnessing revived interest, driven by Bitcoin’s rally beyond the $67,000 threshold. Santiment’s analysis underscores substantial discussions revolving around specific tokens, including POPCAT and AMP. POPCAT, a memecoin, has experienced a remarkable 41% surge in market capitalization within 24 hours, drawing parallels to established coins like WIF and DOGE.
However, caution is being exercised because of potential correction risks amidst heightened fear of missing out (FOMO). On the other hand, there has been an increase in the trading volume of AMP. However, its scalability and impact on the financial market are under discussion. Even though sentiment is neutral, AMP can also be seen as a potential stock to buy based on its market cap if Bitcoin continues going up.
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