“Bitcoin’s Remarkable Price Surge: What It Means for the Market and a Strategic Move with MicroStrategy”

In just a few weeks, the price of Bitcoin has surged by $10,000. BTC, along with other cryptocurrencies such as COIN, RIOT, and more, are on the rise. What’s next? Technicians have the answer.

You’ve seen it. I’ve seen it. On the evening of October 23, Bitcoin (BTC) saw a significant increase of thousands of dollars. In fact, in just a few weeks, it added nearly $10,000 to its price. It feels like we’re back in 2021!

Amid all this excitement, I want to point to an important trendline related to December 30, 2022. This line was breached with some enthusiasm on August 16, 2023, and in the coming months, it has gradually recovered itself and established a path back to the lower part of the trendline. In my estimation, this is not a point of opportunity but rather an indication of exhaustion.

$BTC In addition to the retracement at the lower part of the trendline, please note that we are approximately at the 50% level within a long-term time span. This Fibonacci sequence extends from December 15, 2018, to November 10, 2021 (its all-time high). We are close to the 50% figure.

$BTC Based on this explosive move, I’m making a bet on the downside.

Let’s be clear, I’m not shorting BTC. I stopped trading in my crypto account at the end of 2021 and have since focused on directional options trading based on equities. So the question is, which equity presents an intriguing opportunity to capitalize on the weakness in Bitcoin?

I engage in various types of stock trading, including brokerage and exchange platforms like Coinbase Global (COIN) and Riot Blockchain (RIOT), as well as holding companies like Marathon Digital Holdings (MARA). However, I’ve made a decision to go for a high-priced security that has been around for a decade: MicroStrategy (MSTR).

MSTR My trade isn’t speculative; I’ve purchased in-the-money puts with plenty of time left. Specifically, I’ve advanced with a $450 strike on January 19, 2024. The bid/ask isn’t terrible (about 2%), and with approximately 90 days remaining until expiration, I’m hopeful there’s enough opportunity for BTC’s enthusiasm to stabilize.

I can only hope that my estimate turns out better than the predictions of well-known market observers.

1. What is Bitcoin and how does it work?

   • Learn about the basics of Bitcoin and its underlying technology, blockchain. Read more

2. How can I buy Bitcoin?

   • Find out the different ways to purchase Bitcoin, from exchanges to peer-to-peer platforms. Read more

3. Is Bitcoin a safe investment?

   • Understand the risks and benefits of investing in Bitcoin. Read more

4. What is the current price of Bitcoin?

   • Stay updated with real-time Bitcoin prices on popular cryptocurrency tracking websites. Check here

5. How do I store my Bitcoins securely?

   • Explore the various types of Bitcoin wallets and their security features. Read more

6. Can I use Bitcoin for everyday purchases?

   • Discover businesses and services that accept Bitcoin as a form of payment. Read more

7. What is the history of Bitcoin’s price fluctuations?

   • Track the historical price movements of Bitcoin to make informed investment decisions. Read more

8. Are there taxes on Bitcoin transactions?

   • Learn about the tax implications of buying, selling, or using Bitcoin in your country. Read more

9. What is the environmental impact of Bitcoin mining?

   • Explore the discussions surrounding Bitcoin’s energy consumption and its environmental consequences. Read more

10. How can I stay updated on Bitcoin news and developments?

    • Stay informed about the latest in the world of Bitcoin by following reputable cryptocurrency news websites and forums. Explore more

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