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Sometimes the market hands you a setup so clean, you just have to tip your cap.
I’ve been tracking the Bitcoin ETF (IBIT) through what I call an ABC correction — absolutely, beautiful, correction. And what we just saw? That was textbook price action playing out exactly as it should.
This is the kind of pattern that makes technical analysis worth the effort. When you see classic structure like this develop at key support levels, it’s hard not to pay attention.
Why I’m No Longer Short
The correction found potential support right where I expected it — there’s a solid case for this being a bottom. That’s exactly why I closed my short position and started adding some exposure.
When I map out the Fibonacci levels, we’re looking at support around the 51 to 52 area. The 52 level is where I had high conviction for finding a bottom, and the price action poked right into that zone.
What’s particularly interesting here is how cleanly this played out. No messy whipsaw. No ambiguous levels. Just a clean move into support that respected the technical structure.
The Setup That’s Paying 40% in a Week
Now here’s where it gets interesting for traders who believe we’ve found a bottom.
You can pick up exposure in the 52 area, and the premium structure is unusually favorable right now. Going out just 7 days, you’re looking at roughly 40% returns. Even better? You can extend to 2 weeks out and still capture nearly the same premium — that’s almost double the time.
It’s unusual to see premium priced where you can make 40% whether you go 1 week or 2 weeks out. That kind of structure doesn’t show up every day.
Let me break down the specific strikes: For one week out, the 52 strike is paying 44%, while 51.50 is paying 37%. Looking at 2 weeks out, 52 is paying 41% and 51 is paying 32%. These returns are particularly enticing given the current market conditions, providing a strategic opportunity for those looking to capitalize on this setup.
These strikes are positioned below current price action, which gives you a margin of safety if this support level holds.
If you believe this is finding a bottom here, it’s a reasonable spot to pick up some exposure. The technical setup is clean, the premium structure is favorable, and the risk-reward looks solid.
Sometimes the market makes you work for it. Other times, it delivers an absolutely beautiful correction right into your target zone. This is one of those times.
Jeffry Turnmire
Jeffry Turnmire Trading
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I’m just a regular dude in Knoxville, Tennessee: a husband, father, civil engineer, urban farmer, maker and trader.
I’ve been at this trading thing with real money for 20-plus years, and started paper trading over 35 years ago. I have a knack for making some epic predictions that just may very well come true. Why share them? Because I like helping other people — it’s the Eagle Scout in me.
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