Bitcoin's price surge in December brings it closer to $44,000, facing resistance, with QCP Capital suggesting potential retracement to $36,000 despite the ETF approval. The firm anticipates a 'sell the news' scenario in January, but expresses overall confidence in BTC's upward trend, suggesting tactical plays including selling covered calls and buying out-of-the-money puts. Matrixport and CryptoQuant also offer bullish outlooks on Bitcoin's ETF approval.
Our analysis of the situation
Many traders eagerly await the pending launch of the Bitcoin spot ETF, but amidst the market excitement, QCP Capital sees a classic "sell the news" scenario on the horizon. As Bitcoin surges to challenge the $44,000 mark, an air of uncertainty envelops the community - will the ETF launch trigger the anticipated rally, or lead to an unexpected retrace to $36,000?
QCP Capital has honed in on the potential timeframe for the ETF's announcement, cautioning that the true demand for the BTC spot ETF may not initially meet market expectations. Brace for a possible retracement to $36,000 following the news, they advise, before the ascent resumes, echoing sentiments of a familiar "buy the dip" strategy.
Despite the short-term bearish outlook, it's not all doom and gloom for Bitcoin, as several industry voices forecast a bullish future. Matrixport and CryptoQuant both herald the Bitcoin ETF approval as a catalyst for a grand ascent, foreseeing price milestones that could break through the $50,000 barrier and even soar to $54,000 in the medium term.
While the hype surrounding Bitcoin ETFs intensifies, TV commercials from various applicants are building crucial support for Bitcoin's price. As the battle for ETF supremacy heats up over the holiday season, Bitcoin may just find itself propelled toward a $50,000 milestone should the spot ETFs gain the much-anticipated regulatory nod.
In anticipation of the possible rollercoaster ride awaiting Bitcoin, QCP Capital offers a strategic game plan: sell covered calls for those already long on BTC, leveraging elevated forwards and vols, and consider the acquisition of out-of-the-money puts to navigate any post-ETF turbulence. As the market braces for the ETF storm, the only question that remains is whether Bitcoin's untamed spirit will weather the storm, or succumb to the elusive pullback.
Disclaimer: Our articles are NOT financial advice, and we are not financial advisors. Your investments are your own responsibility. Please do your own research and seek advice from a licensed financial advisor beforehand if needed.
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