Key Takeaways:
- QCP Capital highlights a striking correlation between Supermoons and counter-trend reversals in the Bitcoin market.
- Historical data indicates distinct market shifts in Bitcoin, coinciding with the arrival and departure of Supermoons.
- QCP Capital provides recommendations on trading strategies based on Supermoon periods and other fundamental factors influencing the Bitcoin market.
QCP Capital, a prominent market analysis firm, has recently drawn attention to an intriguing phenomenon in the Bitcoin market: the Supermoon effect. The firm claims to have identified a notable correlation between Supermoon periods and counter-trend reversals in Bitcoin trading trends.
The Supermoon phenomenon, characterized by the moon’s closest approach to Earth, appears to have a tangible impact on Bitcoin trading patterns. QCP Capital examined the past three years of market data and observed clear counter-trend reversals in the Bitcoin market, precisely coinciding with Supermoon periods. For instance:
- In 2020, from the week of March 9th to May 7th, a Supermoon period, Bitcoin experienced a 161% rally during a bear market.
- In 2021, from the week of April 27th to June 24th, another Supermoon period, there was a 51% sell-off during a bull market.
- In 2022, from the week of June 14th to August 12th, yet another Supermoon period saw a 43% rally during a bear market.
Recently, Bitcoin hit the $30K mark and other cryptocurrencies were expected to follow. With resistance in place, Altcoins have been expected to rise.
Now, given this study, it is essential to consider that these market movements are not solely influenced by Supermoons. QCP Capital’s analysis also delves into the fundamental factors at play in the Bitcoin market.
These factors include expectations regarding responses from the Securities and Exchange Commission (SEC), decisions by the Federal Reserve, and inflation projections. For example, the firm notes that positive news has been largely priced into Bitcoin, and there are no affirmative responses expected from the SEC this quarter.
Additionally, the Federal Reserve appears committed to another interest rate hike, and inflation is expected to stabilize around 3-4%. With the convergence of the Supermoon phenomenon and these fundamental factors, QCP Capital suggests some strategic moves for traders. The firm recommends selling end-September Bitcoin calls at $33k and $35k, and using the premiums to fund long zero-cost puts at $30k and $28.5k.
They believe this strategy could be advantageous due to the anticipated resistance against further rallies. All in all, the study conducted by QCP Capital offers intriguing insights into the Bitcoin market’s behavior.
They have tried to connect the astronomical Supermoon phenomenon to trading trends. Traders may want to keep an eye on the lunar calendar as they navigate the tides of the Bitcoin market.
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