Bitcoin has plunged below $60,000. Early this morning, the price difference between BTC on Coinbase and BTC/USDT on Binance was -0.285%, according to data from CryptoQuant.
This is the lowest negative spread since May 1, indicating greater selling pressure from US investors on Coinbase. The market is facing a large supply from Mt. Gox repaying investors and selling by the US and German governments.
Source: CryptoQuant
These events are putting great pressure on Bitcoin, pushing its price down to the $60,000 support several times. There is speculation that the market could fall further, possibly to $55,000.
This week has been a tough one for Bitcoin. A series of negative headlines has pulled BTC back to the $60K support zone. The $58K-$60K range has been a strong support zone in the second quarter, but current conditions are challenging its solidity.
QCP Capital believes that supply concerns are overblown. They believe that the market is likely to fluctuate within a certain range, despite current concerns about oversupply. QCP notes:
“BTC could test lower levels towards $50k but the market will find strong support there, as interest from TradFi continues to penetrate thanks to general regulatory easing around the world.”
Investment outlook and strategy
QCP Capital recommends focusing on generating profits in a sideways market in the third quarter. Ethereum also offers some interesting opportunities.
With the upcoming launch of the ETH ETF spot in early July, it is likely to trigger some short-term price increases. QCP sees this ETF as an upside driver that could generate excitement in the market.
Their trade idea includes BTC CFCC (September 27, 3 months), where traders can earn 55% per annum every Friday as long as the spot price remains above $60,000. If the spot price falls below $50,000 at expiry, the deployed USD will be converted to BTC at $55,000.
BTC/USDT Daily Chart | Source: TradingView
For Ethereum, the Zero-Cost ERKO Seagull strategy offers a maximum profit potential of 901.2% per year or $2,000 per ETH if the spot price is just below $6,000 at expiration.
This strategy involves selling a $3,000 put option to buy a $4,000 call option with a $6,000 strike. The cost of this strategy is zero, making it an attractive option for traders looking to capitalize on bullish speculation surrounding an ETF launch.
You can see coin prices here.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
SN_Nour
According to Cointeleg
