Bitcoin Sees Resistance, May Stall at $35K, says Bitcoin Analysts
Ishan Garg Posted On July 6, 2023 
A fresh Bitcoin analysis predicts that the BTC bulls will encounter the challenging task of breaking BTC price action beyond $35,000. The trading firm QCP Capital, in its July 5 update, stated the potential cooling-off point for the Bitcoin bull market to be in the mid-$30,000 range.
Playing on the Favored Trends
BTC’s price seems to be in stagnation, around $30,000. Analysis around its price raise concerns about how Bitcoin gains have already materialized. The market participants are now intrigued and popularizing the section between $35,000 and $40,000, including QCP. They are seeking the local top position to catch up with these actions.
QCP revealed its plans for H2 trading,
“Tactically (short-term), our favored trade to play this is selling end-Sep 33k to 35k calls and using the premiums to buy 30k puts.” The company analyzed the moving average convergence/ divergence (MACD) indicator, which measures the price strength at given levels of a market trend, like at $35,000.
“The top-side levels work well as any rally from here would be considered the ending 5th wave from the November FTX lows…The 33-35k level is also where we see wedge resistance as well as MACD hitting 3-year triangle resistance,” stated the company.
In the update, there was also a reference to a cooling macroeconomic environment, with the potential to offer few volatility hints for markets.
Macro Environment Analytics
The US Federal Reserve maintains a hawkish stance, stating that interest rate hikes may arise despite the downplaying inflation trend. QCP explained the analytics as follows:
“On the macro side, the Fed looks locked into another hike this month (although this is largely priced by markets), and inflation appears likely to stagnate around 3-4% until year-end, with positive base effects from the oil price decline ending this quarter, and high-frequency rent prices turning back up…..This means that while falling inflation has been getting the market excited, for the Fed with their 2% inflation target blinkers on – it’s close but probably still not enough for rate cuts.”
QCP also added that apart from the SEC’s potential approval of a spot-based Exchange Traded Fund (ETF), no other catalyst has a significant role in its price strength.
Working Towards BTC Price Correction
Everywhere else, the traders are elevating the possibility of a fresh BTS price correction. Reflexivity Research’s co-founder William Clemente showcased data, exposing that futures traders were far away from the universally bullish trend on Bitcoin.
The monitoring resource Material Indicators’ co-founder Keith Alan said that he is expecting a pullback because a new block of resistance emerged on the Binance order book at $36,000.
A part of the commentary with a chart of $30 million ask wall stated, “Not sure bulls will make it to $36k, but don’t think this rally is over yet. I could be wrong. Watching charts for clues.”
During publishing, the data from TradingView showed trading near $30,600.
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