Home Bitcoin News Bitcoin Bulls Face Uphill Battle as Resistance Mounts at $35,000 Level

Bitcoin Bulls Face Uphill Battle as Resistance Mounts at $35,000 Level

Bitcoin Bulls

 

Bitcoin, the world’s leading cryptocurrency, is facing a significant challenge as bullish investors strive to push its price above the critical $35,000 level. Market analysis suggests that this particular threshold may prove to be a turning point for the ongoing bull market in Bitcoin. However, as the price of BTC hovers around $30,000, concerns are mounting among traders and investors that most of its recent gains may have already been realized.

The price range between $35,000 and $40,000 has garnered significant attention from market participants eagerly anticipating a potential market peak. Among those keeping a close watch on this range is trading firm QCP Capital, which has outlined its tactical trading strategy for the second half of the year. The firm plans to sell end-September 33k to 35k calls while using the premiums to purchase 30k puts. This strategic approach aims to capitalize on potential market cooldowns and profit from price fluctuations within this range.

The analysis also emphasizes the potential impact of the macroeconomic environment on Bitcoin’s price movement. Despite inflation showing a consistent downtrend, the United States Federal Reserve remains committed to further interest rate hikes, which are anticipated to occur later this year. QCP Capital predicts that inflation will likely remain around 3-4% until the end of the year, a level that may not meet the Fed’s threshold for rate cuts.

QCP Capital’s analysis points out the resistance level indicated by the moving average convergence/divergence (MACD) indicator at $35,000. The firm suggests that any rally beyond this point could mark the completion of the fifth wave since the November FTX lows. Additionally, the $33,000 to $35,000 range represents wedge resistance, which coincides with the MACD’s 3-year triangle resistance.

The macroeconomic environment also plays a crucial role in influencing Bitcoin’s price movement. Despite inflation showing a consistent downtrend, the United States Federal Reserve remains committed to further interest rate hikes, which are anticipated to occur later this year. QCP Capital predicts that inflation will likely remain around 3-4% until the end of the year, a level that may not meet the Fed’s threshold for rate cuts.

Another factor that has been highly anticipated for Bitcoin’s price strength is the potential approval of the first Bitcoin spot-based exchange-traded fund (ETF) in the United States. However, QCP Capital suggests that no immediate decision is expected, prolonging the uncertainty surrounding the potential impact of an approved ETF on the market.

While Bitcoin’s price has experienced significant growth in recent months, traders express concerns about a potential price correction. Data reveals that futures traders are not unanimously bullish on Bitcoin, indicating a level of caution among market participants. Additionally, the emergence of a new block of resistance on the Binance order book at $36,000 has heightened expectations for a possible pullback in BTC’s price.

Despite these concerns, some analysts remain optimistic, suggesting that the current rally may not be over just yet. They argue that Bitcoin’s upward momentum could persist, albeit with potential fluctuations along the way.

At the time of reporting, Bitcoin is trading close to $30,800, reflecting the cautious sentiment among traders and the ongoing battle between bulls and bears.

In conclusion, Bitcoin’s path towards higher price levels faces obstacles as bulls struggle to overcome the resistance at $35,000. Traders closely monitor market dynamics, macroeconomic conditions, and the potential approval of a Bitcoin ETF to assess the future direction of BTC’s price. As the cryptocurrency market continues to evolve, only time will tell whether bulls can push Bitcoin to new highs or if a market cooldown lies ahead.

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MikeT

Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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