Bitcoin’s price rally may face a hurdle in breaking above the $35,000 mark, according to various analysts. QCP Capital, a trading firm, suggests that the mid-$30,000 range could serve as a cooling-off point for the ongoing Bitcoin bull market. The area between $35,000 and $40,000 has garnered attention from market participants seeking to identify a local top.
QCP Capital specifically points out the resistance forming for the moving average convergence/divergence (MACD) indicator at $35,000. This level is seen as an important threshold, indicating the end of the fifth wave since November’s lows on the FTX exchange. Additionally, the wedge resistance and MACD hitting three-year triangle resistance are observed around the $33,000 to $35,000 range.
The macroeconomic environment also plays a role in potential volatility cues for the market. Despite falling inflation, the US Federal Reserve remains hawkish and signals further interest rate hikes this year. The approval of the first Bitcoin spot-based exchange-traded fund (ETF) by the United States is another significant factor affecting BTC price strength, although no imminent decision is expected.
Traders have expressed concerns about a possible correction in Bitcoin’s price. Data from Reflexivity Research shows that futures traders had varied opinions on Bitcoin, contradicting the prevailing bullish sentiment. Keith Alan, co-founder of Material Indicators, identifies a new block of resistance on the Binance order book at $36,000, suggesting a potential pullback.
At the time of writing, BTC/USD was trading near $30,800. It is worth noting that investing and trading in cryptocurrencies carry risks, and readers are advised to conduct their own research before making any investment decisions.