Bitcoin’s Resistance: Leveraging Bear Call Spreads for Strategic Positioning
Anand Raj
Trade Strategy: Bear Call Spread
View: Moderately Bearish View on BTC
Sell 1x BTC-17MAR24-72,500-C @ $400
Buy 1x BTC-17MAR24-74,000-C @ $250
Target: Spot level < $72,500
Payoff chart at Expiry
Net Credit of Strategy: $150/BTC
Why are we taking this trade?
Following its ascent to new all-time highs, BTC has begun to exhibit significant retracements and has breached a 4-hour support level. A fresh supply zone or resistance zone has materialized on the 4-hour chart, approximately around the 72400 levels.
In light of these recent developments in BTC’s price action, the bear call spread strategy emerges as an enticing opportunity to leverage potential gains. This strategic approach serves to confine losses to the disparity between the strike prices and the net credit received. For instance, within our current scenario, this would equate to $1350 ($72,500 – $74,000 – $150).
How to take this trade on Deribit?
Step 1: Go to Combo books under the Strategy tab & create combo.
Step 2: Click RFQ and send your order to the Combo List.
Step 3: Go to Combo list (BTC), click on your Strategy and execute.
