Research Summary
The report discusses the current market conditions of Bitcoin (BTC), suggesting a Bull Put Spread strategy for traders who anticipate a bullish trend. It provides a detailed explanation of the strategy, potential payouts, and reasons for its recommendation. The report also provides a step-by-step guide on how to execute this strategy on Deribit.
Key Takeaways
Bitcoin’s Market Conditions
- Choppy Market: The report describes the current market conditions for Bitcoin as choppy, with strong support at $66,700. It suggests a potential for a breakout, indicating a bullish trend.
- Low Spot BTC ETF Flows: The report notes that spot BTC ETF flows have been quite low throughout the week, only reaching double digits, but they remained positive.
Bull Put Spread Strategy
- Strategy Explanation: The Bull Put Spread strategy involves selling a higher strike put option and buying a lower strike put option. Both options have the same underlying and expiration date.
- Trade Structure: The report suggests selling a BTC-14JUN24-$66,000-P at $922 and buying a BTC-14JUN24-$65,000-P at $663. The target is a spot level greater than $66,000.
- Maximum Profit: The maximum profit from this strategy is $259 per Bitcoin.
Market Influencers
- Fed Policy and Inflation Data: The report identifies Federal policy and inflation data as two key variables that could push Bitcoin to all-time highs.
- Bitcoin Exchange Balances: The report notes a sharp decline in Bitcoin exchange balances, indicating that whales are moving coins off exchanges in anticipation of higher prices, which is a bullish sign.
Actionable Insights
- Consider Bull Put Spread Strategy: Traders who anticipate a bullish trend for Bitcoin might consider implementing a Bull Put Spread strategy. This involves selling a higher strike put option and buying a lower strike put option.
- Monitor Market Influencers: Traders should keep an eye on Federal policy and inflation data, as these could potentially push Bitcoin to all-time highs.
- Observe Bitcoin Exchange Balances: A decline in Bitcoin exchange balances could indicate a bullish trend, as it suggests that whales are moving coins off exchanges in anticipation of higher prices.
