10.5 C
Amsterdam
28 March 2024
PumpMoonshot
Image default
Bitcoin

Bitcoin Price Analysis: How Will Bitcoin Options Traders Prepare For The Approval of The BTC ETF

  • Bloomberg analysts expect the approval of the BTC ETF in the coming months, and smart options traders can use this strategy to take advantage of this possibility.
  • The 24-hour trading volume is at $30,926 billion.

The daily technical chart and price action of Bitcoin display an upward trend. According to the pivot levels, the primary support level is $46K. On the other side, if it rushes up, the resistance level to follow is $50K. Although the chart forms a bullish harami candlestick pattern within the day, it is predicted that the price may remain upwards with medium reliability.

The Zig-Zag framed a top of $64895 on April 04. After that, investors can notice a massive correction of 55%, all the way low to $28600. Now price levels are back around $40K this week. 

The volume of (661) is below the MA of 20-days (1.998K). As a result, the volume is low, causing its price to struggle around the resistance zones. Investors may also mark that the volume bars on the chart are declining, which intimates that notable volatility is expected in the upcoming trading session. 

The Schaff Trend Cycle indicator (bearish) with a 1.71 represents a sell signal in the coin, projecting a downtrend. Additionally, Investors can see a red sell signal and a downward slope in the index.

A Potential Positive Price Trigger is Imminent on Bitcoin

Waiting for the U.S. Securities and Exchange Commission to approve the instruments traded on the Bitcoin Futures Exchange since July 2013, when the Winklevoss brothers applied for their “Bitcoin Trust.” 

Grayscale’s Bitcoin Trust (GBTC) was finally able to be listed on the OTC market in March 2015, but these instruments are subject to many restrictions, restricting investor access. 

With this in mind, the effective approval of the US Securities and Exchange Commission for trading ETFs in the United States may become one of the events that will change the price of Bitcoin forever. By expanding the realm of potential buyers to basic assets, this event could become a trigger for BTC to become a multi-billion dollar asset. 

Bloomberg ETF analysts Eric Balchunas and James Seyffart released an investor report on August 24, suggesting that the approval of the US Securities and Exchange Commission may be as early as possible, around October. Although people can use futures contracts to leverage their long positions, if there is a sudden negative price change before approval, they will be at risk of being liquidated. 

Therefore, professional traders may adopt option trading strategies, such as “Long Butterfly.” By trading multiple call options on the same expiration date, a profit that is 3.5 times higher than the potential loss can be obtained. The “long butterfly” strategy allows traders to profit from the upside while limiting losses. 

It is important to remember that all options have a set expiry date. Therefore, the price appreciation of the asset must occur within a specified period. 

Overall, this trade produces better risk-reward results than trading leveraged futures, especially when considering the limited downside. For those waiting for ETF approval at some point in the next few months, this seems like an attractive bet. The only initial fee required is 0.07 Bitcoin, which is enough to cover the maximum loss.

Resistance Level: $50K

Support Level: $46K

News Source

Related posts

Fidelity Reveals How Bitcoin (BTC) Could Reach A $1.3 Billion Market Cap.

PumpMoonshot

Bitcoin Forecast BTC/USD March 22, 2022

PumpMoonshot

Bitcoin(BTC) Price Can Flip The Trend Only If It Breaks These Levels!

PumpMoonshot
Verified by MonsterInsights