February 26, 2024

Crypto Portfolio Strategy: Opportunistic Long Positions Amid Bitcoin Volatility


The wild ride continues in the crypto space, traders and investors are strategically navigating the recent fluctuations in Bitcoin’s price, aiming to capitalize on potential mean-reverting moves. Overnight, Bitcoin experienced a decline to support levels at 39,220 and 38,400, creating an opportunity for a long position with an anticipation of a rebound.

The current market sentiment suggests that Bitcoin may be undervalued in the short term as it hovers around the $39,000 mark. Traders are eyeing a mean-reverting move higher, targeting key resistance levels at $41,700 and $43,000.

One notable observation is the decreasing selling pressure on the Grayscale Bitcoin Trust (GBTC), which has nearly reached parity to Net Asset Value (NAV). This reduction in selling pressure could influence overall market dynamics.

However, traders are cautious and emphasize the importance of Bitcoin achieving acceptance over the $40,500 level. Failure to breach this level might indicate a continuation of the downtrend, potentially pushing the price towards $36,000.

As of January 23, the Peregrine Trading DBT portfolio on HootDex holds 1 hBTC with an additional 5 Btht HedgeTokens, reflecting a net long position. The hedge tokens serve as a risk management strategy and will be lifted when market direction becomes clearer, aligning with the anticipated upward move in BTC.

The strategy also involves building a long-term position in Ethereum (hETH), with an initial holding of 10 hETH. The intention is to accumulate more in anticipation of a potential Ethereum approval later in the year. Similarly, the portfolio includes hMATIC, strategically positioned within the Ethereum ecosystem, offering a long swing opportunity within a high timeframe location.

The PECU and Gold pair (hPECUAU) has seen a slight reduction in holdings, aligning with the plan to be net sellers of gold approaching January 29.

Market risks are acknowledged, particularly considering Bitcoin’s current downtrend on the daily timeframe and its proximity to the 40.5K-36.4K range. The portfolio manager remains agile, ready to switch to a net short position with the Btht Hedge Token if the support levels at 38,400 fail to hold. This would align with a broader market expectation of a potential selloff, allowing the portfolio to capitalize on the downward movement.

In the ever-evolving crypto landscape, such strategic and nimble approaches highlight the dynamic nature of cryptocurrency trading, where market participants seek to balance risk and reward in the pursuit of profitable opportunities.

Dorian Cultraro is the digital assets manager and trader for Peregrine Trading DBT. Peregrine Trading DBT operates as an actively managed Digital Basket Token (DBT), featuring a diverse basket of digital assets available on HootDex. The DBT stands out for its actively traded underlying assets, emphasizing dynamic management strategies to navigate the rapidly evolving digital asset market. This approach positions Peregrine Trading DBT as an actively curated and responsive investment vehicle, reflecting the team’s commitment to maximizing opportunities within the digital asset landscape listed on HootDex.

Learn more about Dorian Cultraro and his views on digital asset and global markets here:


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