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Leading trading firm QCP Capital has conveyed a positive outlook regarding Bitcoin’s price trajectory, predicting a possible return to the peak of $74,000.
Bitcoin Set to Revisit $74k Peak
In a recent communication, the firm noted that it has detected significant buyers purchasing 100,000 to 120,000 BTC Calls for December 2024, reflecting confidence in the cryptocurrency’s upward trend.
“US CPI figures prompted a breakout from the range across risk assets. BTC has since traded back above 66k,” the firm stated.
The rise in spot prices has coincided with heightened institutional interest, with notable asset managers Millennium and Schonfeld investing around 3% and 2% of their assets under management (AUM) into BTC spot ETFs.
QCP Capital emphasizes several factors that are favorably aligning for Bitcoin’s breakout, including increasing sovereign and institutional adoption, diminishing inflation worries, and the forthcoming US elections.
These elements, along with the recent price movements, have sparked speculation regarding the revival of the bull market.
QCP: We anticipate bullish momentum here that could lead us back to the highs of 74k. The desk observed substantial buyers of 100-120k BTC Calls for Dec 2024 on this upward movement in spot. Institutional demand for BTC continues to rise with major asset managers Millennium and Schonfeld…
— Wu Blockchain (@WuBlockchain) May 16, 2024
QCP Capital Proposes Two Trading Strategies
In light of this favorable outlook, QCP Capital presents two trading strategies for investors looking to take advantage of a potential bullish trend.
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The first is the June Seagull strategy, which consists of selling a 60,000 Put option while concurrently buying a 70,000 Call option with an 88,000 knock-out level.
This trade can be executed at no cost, and if the BTC spot price approaches 88,000 at expiration, it could result in a maximum payout of $18,000 per BTC, translating to a 249% annualized return.
The second trading strategy introduced by QCP Capital is the August Seagull strategy, which involves selling a 58,000 Put option and purchasing a 70,000 Call option with a 100,000 knock-out level.
Galaxy Digital Founder Anticipates Bitcoin to Trade Within Limited Range
Despite the optimistic perspective from QCP, Michael Novogratz, the founder of Galaxy Digital Holdings, a notable digital-asset financial services firm, foresees Bitcoin remaining within a relatively confined trading range in the current quarter.
As reported, he anticipates Bitcoin to stay within the range of approximately $55,000 to $75,000 until specific market events or conditions drive prices higher.
Novogratz referenced the favorable conditions experienced in the fourth quarter of the previous year and the first quarter of this year.
“I believe that is likely where we will be for this quarter, possibly next quarter until either A, the Fed begins to cut rates due to an economic slowdown or B, we navigate through the election, which I think will clarify the crypto regulatory landscape one way or another.”
Conversely, technical analyst Rekt Capital asserts that Bitcoin has exited the post-halving “danger zone” and entered an accumulation phase, as evidenced by diminishing selling pressure.
“The Post-Halving Bitcoin “Danger Zone” (purple) is officially over,” the well-known crypto trader stated in a recent post on X.
The post Bitcoin to Return to $74K Highs, Bullish Momentum to Sustain: QCP Capital appeared first on Cryptonews.
