Analysts Share Bullish Strategies for Bitcoin

Bitcoin Reaches Record Levels

Bitcoin has made a strong start to the seasonal rise in October, reaching record levels above $126,000. Investors who missed the previous rally may be wondering how they can get involved in this opportunity.

Upward Strategies

Analysts suggest that investors use call spreads or out-of-the-money (OTM) call options to take advantage of potential gains. Markus Thielen, founder of 10x Research, advises investors to buy OTM call options or call spreads with higher strike prices. Thielen stated, “Buying OTM calls or call spreads, such as $130,000/$145,000 with a 1-2 month expiration, allows investors to benefit from upward moves without overpaying.”

A call option gives the buyer the right to purchase an asset at a specified price. This strategy helps investors reduce their initial costs and balance potential gains. It also offers the advantage of limiting maximum losses, especially if the market unexpectedly declines.

Financing with Put Options

Another strategy, according to Greg Magadini, derivatives director at Amberdata, is financing call spreads by selling OTM puts. Magadini said, “Using the income from selling an OTM put to acquire multiple call spreads can help capture upward movements at a lower cost than directly buying OTM calls.” However, it is important to understand the risks of this strategy. Selling put options creates an obligation to buy if the Bitcoin price falls below that level.

In summary, it may be possible to take advantage of upward fluctuations in Bitcoin with these strategies recommended by analysts. For those looking for a long-term investment, considering the historical performance of Bitcoin trading may prove to be the most profitable strategy.