Bitcoin (BTC) bulls face a daunting task of pushing BTC price action above $35,000, new analysis predicts.
in its latest market update On July 5, trading firm QCP Capital marked the range around $30,000 as a potential cooling point for the bitcoin bull market.
Bitcoin Ushers in Pot-FTX Rally Peak
With the BTC price stagnating around $30,000, concerns are growing that most of its gains have already been realized.
The area between $35,000 and $40,000 is now particularly popular with market players looking to chase local tops, QCP being one of them.
“From a tactical (short-term) perspective, our favorite trade is to sell 33,000 to 35,000 calls at the end of September and use the premium to buy 30,000 puts,” it summed up the trading plan for the second half of the year.
The QCP specifically highlights incoming resistance on the Moving Average Convergence/Divergence (MACD) indicator, which is designed to measure price strength at a given level during a market trend, which is $35,000.
“Top levels work well, as any rally from here will be seen as the end of the fifth wave from the November FTX low,” it continued.
“The 33-35k level is also where we see wedge resistance as well as MACD hitting 3-year triangle resistance.”
The update also mentioned that the cooling of the macroeconomic environment may provide few volatility clues for the market.
The Fed remains hawkish, with officials insisting that further rate hikes will be on the cards this year even as inflation continues to fall.
“On the macro front, the Fed looks set to raise rates again this month (although this is largely priced in by markets), inflation is likely to stagnate around 3-4% by the end of the year, and a positive base effect from lower oil prices would have High-frequency rental prices picked up towards the end of the quarter,” it explained.
“This means that while the market is excited about the decline in inflation, for the Fed’s 2% inflation target, although close to the target, it may not be enough to cut interest rates.”
Speaking of the main catalyst for BTC price strength over the past month — the possible approval of the first bitcoin spot exchange-traded fund (ETF) in the U.S. — there is also no imminent decision, the QCP added.
Binance’s $30M Asking Price Sparks Concerns
Elsewhere, traders kept raising the possibility of a fresh correction in bitcoin prices throughout the day.
Related: Bitcoin Analyst Marks BTC Price in $3.25K Launchpad Region
Futures traders are far from generally bullish on Bitcoin, according to data revealed by Reflexivity Research co-founder William Clemente.
“Everyone is optimistic”
Quarterly futures basis otherwise stated pic.twitter.com/eXRa36LwS2
— Will Clemente (@WCclementeIII) July 4, 2023
Meanwhile, Keith Alan, co-founder of monitoring resource Material Indicators, said he “expects a pullback” as new resistance at $36,000 appears on Binance’s order books.
“Not sure if the bulls can reach $36,000, but don’t think this rally is over. I could be wrong. Watch charts for clues,” part of the comment pointed out Next to it is a chart showing a $30 million asking price wall.
Data from Cointelegraph Markets Pro and transaction view As of this writing, BTC/USD is trading near $30,800.
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This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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