Latest news with #DeathCross
Business Mayor
22-05-2025
- Business
- Business Mayor
Crypto Analyst Puts Bitcoin Price At $120,000 If This Range Breakout Happens
Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing Strict editorial policy that focuses on accuracy, relevance, and impartiality Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. The Bitcoin price is flying high at the moment, having rallied to a new all-time high (ATH) of $111,800 on May 22. Now, crypto analyst Tony Severino has predicted that this rally is likely to sustain, with BTC reaching $120,000 at some point. Bitcoin Price To Reach $120,000 Following This Range Breakout In an X post , Tony Severino predicted that the Bitcoin price could reach between $116,000 and $120,000 following the breakout from the $106,000 range. This prediction came just before BTC surged past its previous ATH of $109,100 on May 21. The analyst asserted that the flagship crypto could witness a 'long, white candlestick' leading to the rally to this range. Related Reading He had also warned that failure to break above the $106,000 range could lead to a retracement as lower timeframe momentum begins to wane. In another post, Severino explained why the range breakout was significant, noting that these breakouts in the Bitcoin price tend to offer a sustainable short-term trend to ride higher. He added that a valid range breakout should be supported by the RSI above 70 on the 3-day timeframe. Read More Actor Ben McKenzie says crypto is like a 'Ponzi scheme' The Bitcoin price currently boasts an ultra-bullish outlook, having rallied above the $110,000 mark and reached a new ATH of $111,800. Commenting on the surge to a new ATH, Severino admitted he was wrong about the bear thesis, stating that the macro fundamentals led over the technicals on this rally. Source: Tony Severino on x The crypto analyst is confident that the Bitcoin price can go way higher. In his latest analysis, he revealed that BTC's quarterly just triggered a perfected TD9 Sell Setup. He added that the only other time this happened was in Q4 2017, which was the most bullish quarter in crypto history. Bitcoin eventually rose by over 350% above the candlestick open. If history were to repeat itself, Severino predicts that the move will be 'fast, violent, and over' sooner than anyone can imagine. He noted that up appears to be the chosen direction, which is a positive for the Bitcoin price. A Golden Cross Is Incoming For BTC In an X post, crypto analyst Titan of Crypto stated that a golden cross is incoming for the Bitcoin price. He remarked that BTC is repeating the same pattern, with a Death Cross happening before the Golden Cross. The analyst added that the last time this happened, it triggered a major rally. Related Reading In another post, Titan of Crypto predicted that the Bitcoin price could rally to as high as $135,000. He affirmed that the target is still play, with BTC likely to reach this price level this year. Meanwhile, veteran analyst Peter Brandt suggested that Bitcoin could rally to between $125,000 and $150,000 by August. At the time of writing, the Bitcoin price is trading at around $111,300, up over 3% in the last 24 hours, according to data from CoinMarketCap. BTC trading at $110,627 on the 1D chart | Source: BTCUSDT on Featured image from Getty Images, chart from
Yahoo
08-04-2025
- Business
- Yahoo
How Stock Options Traders See Apple's (AAPL) Death Cross
Apple (AAPL) stock has printed the dreaded 'Death Cross,' a technical charting phenomenon in which a shorter-running moving average slips below a longer-running one. Typically, this pattern involves the 50-day moving average intersecting below the 200 DMA. Discover outperforming stocks and invest smarter with Top Smart Score Stocks. Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener. When it flashes, the event symbolizes a loss of positive momentum and potentially the beginning of a corrective cycle, if not an outright bear market. On the other hand, contrarian investors view the indicator as a counterintuitive buying signal. After all, when the death cross flashes, plenty of bad news has already been baked into the security. Most recently, macroeconomic headwinds in the form of Trump tariffs and a looming trade war have pushed U.S. stocks lower across the board, with tech giants like Apple taking market beatings of ~15%. One must conduct some statistical legwork to understand whether Apple's death cross should be interpreted at face value. Sure enough, investors can view the negative intersection as a buying signal — but timing matters. Ultimately, I am bullish on AAPL stock and rate it as a Buy — but only under a particular technical strategy. With a technical outlook, the Death Cross presents an opportunity for short-term trades to capitalize on a near-term rebound. Over the past decade, AAPL stock printed five death crosses: Aug 2015, Dec 2018, June 2022, Oct 2022, and March 14, 2024. Using TipRanks' Historical Prices screener, investors can conduct their own statistical analysis. A key takeaway is that AAPL is down four times out of five a month after the flashing of the death cross. Obviously, a contrarian success ratio of 20% is relatively poor. If you simply bought the death cross as a contrarian reflex, there's statistically a good chance that your near-expiration long-side wager would fail. Instead, the bulls historically take their time digesting the bad news in AAPL stock. At the three-month mark, the contrarian success ratio following the death cross is 80% favorable for the optimist. What's more, the average three-month return—including the one instance where AAPL was in the red—stands at 11.47%. If this metric were applied to Friday's closing price of $188.38, the projected price three months out would be $209.99. With that, I have the necessary ingredients to plot an effective options strategy. Based on the historical response to the Death Cross, I'm assuming that AAPL stock will pop by double-digit percentage points in three months. By logical deduction, my target options chain will expire on July 18, and I will seek strategies with an upside target of $210. Alternatively, speculators seeking a near-term espresso shot in AAPL stock may consider an aggressive options strategy called the bull call spread, specifically, the 205/210 call spread expiring July 18. This transaction involves buying the $205 call option and simultaneously selling the $210 call. The proceeds from the short call partially offset the debit paid for the long call, resulting in a discounted net debit. Functionally, the bull call spread allows market participants to modulate the interplay between risk-taking (or debit distribution) and risk underwriting (credit reception). Stated differently, you could theoretically just buy the $205 call outright, knowing that the death cross response will likely drive AAPL stock to $210 by expiration. However, a $205 call option on Apple is quite expensive, even if it's out of the money. Selling a call would result in a premium, thus helping to defray some of the cost of the long call. Of course, the penalty of the bull call spread is that the sold call represents an obligation if it, too, goes into the money. Because you bought a call at a lower strike price, you cover this obligation. At the same time, if the target security screams higher, the reward is capped at the short strike price. Of course, one could elect an ultra-high short call within a bull spread strategy to extract maximum reward. The problem with this approach is that there's a chance that the spread will fail to break even. If so, you risk losing the entire net debit paid. On the other side of the equation, too low of a short call may lead to leaving money on the table. I prefer the aforementioned 205/210 call spread because of the relatively small net debit required, combined with the arguably high probability of success. Ultimately, though, the choice of spread will come down to individual risk tolerance. On Wall Street, AAPL stock carries a Moderate Buy consensus rating based on 17 Buy, 11 Hold, and 4 Sell ratings over the past three months. AAPL's average price target of $248.28 per share implies approximately 32% upside potential over the next twelve months. Apple is on the verge of flashing the death cross, a technical pattern in which the 50 DMA slips below the 200 DMA. Ordinarily, this indicator represents a major warning. However, for AAPL stock, it's a contrarian signal, an opportunity to buy the equity. Nevertheless, timing this pattern is critical. Statistically, it's better to avoid the one-month mark following the flashing of the death cross and instead target the three-month mark. By simple deduction, we calculate that there's a solid chance AAPL stock could reach $210 at the July 18 expiration date. This speculation — and the confidence in this narrative — will ultimately dictate which specific options strategy to deploy. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
