Research Summary
The report discusses a potential retracement of Bitcoin (BTC) to the $64,000 demand zone after breaking the $67,000 supply zone. It suggests a Bull Put Spread strategy for traders who believe BTC will bounce back from the $64,000 level. The strategy involves selling a higher strike Put option and buying a lower strike Put option. The report also provides instructions on how to execute this strategy on Deribit.
Key Takeaways
Bitcoin’s Market Outlook
- Retracement to Demand Zone: The 4-hour BTC chart indicates a possible retracement to the $64,000 demand zone after breaking the $67,000 supply zone. This retracement is expected due to a flag and pole pattern.
- Upward Trend: Despite the potential retracement, the overall trend for BTC remains upward, supported by a bullish crypto market atmosphere.
Bull Put Spread Strategy
- Strategy Proposal: The report proposes a Bull Put Spread strategy for traders who believe BTC will bounce back from the $64,000 level. This strategy involves selling a higher strike Put option and buying a lower strike Put option.
- Maximum Profit: If BTC is at or above $64,000 when the options expire, traders will achieve maximum profit from the strategy. The maximum profit is $397 per BTC.
- Maximum Loss: In case of a market downturn, the maximum loss is limited to $603. This is calculated as the difference between the strike prices of the puts minus the net credit.
Trade Execution on Deribit
- Trade Setup: The report provides step-by-step instructions on how to set up and execute the Bull Put Spread strategy on Deribit, a popular cryptocurrency derivatives trading platform.
Actionable Insights
- Consider the Bull Put Spread Strategy: Traders who believe BTC will bounce back from the $64,000 level might consider implementing the Bull Put Spread strategy. This involves selling a higher strike Put option and buying a lower strike Put option.
- Monitor BTC’s Market Trend: Despite the potential retracement to the $64,000 demand zone, the overall trend for BTC remains upward. Traders should keep an eye on the market trend and the overall crypto market atmosphere.
- Understand the Risk: Traders should be aware of the potential maximum loss in case of a market downturn. The maximum loss is limited to $603 per BTC.
- Use Deribit for Trade Execution: Traders can use the Deribit platform to set up and execute the Bull Put Spread strategy. The report provides detailed instructions on how to do this.
