Cryptocurrency analysis firm QCP Capital has released its latest market watch, observing Bitcoin’s consolidation near the bottom of its one-month range following a predictable post-quarter-end volatility sell-off. Despite this recent dip, QCP notes Bitcoin’s impressive Q4 performance, with a 48% gain, alongside Ethereum’s 30% rise.
QCP highlights MicroStrategy CEO Michael Saylor’s recently published Bitcoin purchase tracker as a potential catalyst for another round of buying, which could further support prices. However, the firm cautions against expecting significant price movements in the near term, particularly given the current healthy funding rates.
Citing historical data, QCP points out that January’s average Bitcoin returns (+3.3%) are typically similar to December’s (+4.8%). They anticipate spot prices will remain range-bound until February, when they expect market activity to pick up.
This sentiment is echoed in options flows, with front-end volatility gradually declining. QCP observes a stronger demand for March call options, partially attributed to the substantial volume of March options purchased last Friday. This suggests market participants are anticipating potential price appreciation in the longer term, rather than immediate breakouts.
