An 85% decline in price, and with more to come.
And what is it? Bitcoin. From $20,000 to $3,000 in just under 12 months. All of the short trades signalled by Inteligex are highlighted but I show this chart for another reason.
The predicted targets for Bitcoin generated last December by Inteligex (circled in purple below) were 5250 as a longer-term target [M]oderate, and we reached that about three weeks ago. But here is the extraordinary projection, we now have in play a target of $1350 for Bitcoin over the next quarter.
That would leave people that purchased Bitcoin near its peak with only 6.75% of their investment remaining.
Think of it like this. Tyler and Cameron Winklevoss of Facebook fame were worth $1,000,000,000 each last January. The first Bitcoin billionaires. If we see $1350, that will have shrunk to $67m each. Not exactly hardship, but its one heck of a loss.
Why show this? Because predictive targets on a long-term basis can be used to create wonderful hedge positions with options.
The biggest-ever bet on Bitcoin options is about to expire worthless.
Purchased for almost $1 million on LedgerX’s trading platform just days after Bitcoin peaked a year ago, the call options have a strike price of $50,000 and an expiry date of Dec. 28, 2018. For the contracts to retain any value at expiry, Bitcoin would need to rally more than 1,400 percent.
If that same person had placed just a $50k bet on the price seeing $5250 (circled in purple above), they would now be sitting on a $25m profit. Now options is a big boys game, and trading in such large amounts is beyond most people of course. But a $500 bet would still have returned $250k.
Inteligex QuantumTrader2 advanced users can learn how to use predictive targets to trade options and also set longer-term targets for futures trading and spread betting.