Altcoins and Memecoins Poised for Short Squeeze Following BTC’s 4th Halving: QCP
The completion of Bitcoin’s fourth halving has left traders and investors speculating about the short-term market dynamics.
While the spot price of Bitcoin saw a slight increase over the weekend, not much significant movement was observed immediately after the halving event, QCP wrote in a recent note on Telegram .
Historically, the three previous halvings resulted in a substantial surge in the spot price of Bitcoin, but this exponential growth took place approximately 50 to 100 days after the halving.
If this pattern repeats itself, Bitcoin bulls may have a few more weeks to accumulate larger long positions.
In the short term, analysts at QCP anticipate a potential short squeeze led by Altcoins and Memecoins.
These alternative cryptocurrencies have been experiencing persistent negative funding rates, with some reaching as low as -100%.
A short squeeze occurs when short sellers are forced to cover their positions, driving the price of the asset higher due to the sudden surge in demand.
“What we could see in the short-term is a short-squeeze led by Altcoins and Memecoins which have seen persistent negative funding.”
Furthermore, QCP noted that Ethereum risk reversals have been normalizing to above -4%.
This improvement in speculative sentiment could trigger short covering and a resurgence of leveraged long positions in ETH.
QCP: After BTC's 4th halving, we could see in the short-term is a short-squeeze led by Altcoins and Memecoins which have seen persistent negative funding , with some as deep as -100%. With ETH risk reversals normalising to above -4%, improving speculative sentiment could see…
— Wu Blockchain (@WuBlockchain) April 23, 2024
In light of these market dynamics, QCP suggests two trade
