Bitcoin to Return to $74K Highs, Bullish Momentum to Sustain: QCP Capital

2024-05-16 05:01:29

Ruholamin Haqshanas

Last updated:

May 16, 2024 09:01 EDT | 2 min read

Leading trading firm QCP Capital has expressed optimism about Bitcoin’s price momentum, forecasting a potential return to the highs of $74,000.

Bitcoin To Go Back to $74k High

In a recent note, the firm said it has observed substantial buyers acquiring 100,000 to 120,000 BTC Calls for December 2024, indicating confidence in the upward movement of the cryptocurrency.

“US CPI numbers triggered a break out of the range across risk assets. BTC has since traded back above 66k,” the firm wrote.

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

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

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

QCP: We expect bullish momentum here that could take us back to the highs of 74k. The desk saw sizeable buyers of 100-120k BTC Calls for Dec 2024 on this move higher in spot. Institutional demand for the BTC continues to grow with large asset managers Millenium and Schonfeld…

— Wu Blockchain (@WuBlockchain) May 16, 2024

QCP Capital Offers Two Trade Ideas

In light of this optimistic outlook, QCP Capital offers two trade ideas for investors seeking to capitalize on a potential bullish trend.

The first is the June Seagull strategy, which involves selling a 60,000 Put option while simultaneously buying a 70,000 Call option with an 88,000 knock-out level.

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

The second trade idea presented by QCP Capital is the August Seagull strategy, which entails selling a 58,000 Put option and buying a 70,000 Call option with a 100,000 knock-out level.

Similar to the June Seagull, this trade can also be uted at zero cost. If the BTC spot price reaches just under 100,000 at expiry, investors could 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 the bullish view from QCP, Michael Novogratz, the founder of Galaxy Digital Holdings, a prominent digital-asset financial services firm, expects Bitcoin to remain in a relatively narrow trading range in the current quarter.

As reported, he expects Bitcoin to remain within the range of approximately $55,000 to $75,000 until specific market events or circumstances push the prices higher.

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

“I think that is probably where we are certainly for this quarter, maybe next quarter until either A, the Fed starts cutting rates because the economy finally slows or B, we get through the election and I think the election will bring clarity one way or the other to the crypto regulatory landscape.”

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

“The Post-Halving Bitcoin “Danger Zone” (purple) is officially over,” the popular crypto trader wrote in a recent post on X.

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