"Bitcoin Traders Prepare for Next Breakout Amidst Bullish Predictions and Bearish Warnings"

1 min read
Source: Cointelegraph
"Bitcoin Traders Prepare for Next Breakout Amidst Bullish Predictions and Bearish Warnings"
Photo: Cointelegraph
TL;DR Summary

Bitcoin investors remain optimistic despite the recent price weakness, as positive macroeconomic trends and regulatory support fuel hopes for a considerable bull run in the upcoming months. Professional traders are using options instruments, such as the "risk reversal" strategy, to hedge losses from unexpected price swings. This strategy involves buying protection from a downside move by buying put options and selling put options to net returns above a certain level, while also buying call options for positive price exposure. This allows investors to bet on Bitcoin's price being above a certain range while gaining access to unlimited profits and a maximum capped loss.

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