Bitcoin analysis agrees BTC price may stall at $35K

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<p>Bitcoin (BTC) bulls face a tough task to bring BTC price action past $35,000, fresh analysis predicts.</p>
<p>In its latest market update on July 5, trading firm QCP Capital flagged the mid-$30,000 range as a potential cooling-off point for the Bitcoin bull market.</p>
<h2>Bitcoin homes in on post-FTX rally peak</h2>
<p>With BTC price stagnating around $30,000, concerns are mounting that the majority of its gains have already materialized.</p>
<p>The area between $35,000 and $40,000 is now particularly popular among market participants seeking to catch a local top, and QCP is one of them.</p>
<p>“Tactically (short-term), our favoured trade to play this is selling end-Sep 33k to 35k calls, and using the premiums to buy 30k puts,” it summarized about its plans for H2 trading.</p>
<p>QCP highlighted incoming resistance for the moving average convergence/divergence (MACD) indicator — designed to measure price strength at given levels during a market trend — at $35,000.</p>
<p>“The top-side levels work well as any rally from here would be considered the ending 5th wave from the November FTX lows,” it continued. </p>
<blockquote><p>“The 33-35k level is also where we see wedge resistance as well as MACD hitting 3-year triangle resistance.”</p></blockquote>
<figure><img decoding="async" src="https://s3.cointelegraph.com/uploads/2023-07/0eb15ee1-b146-4ab1-842b-1e1a381991a5.jpg" /><figcaption><em>BTC/USD charts with MACD triangle. Source: QCP Capital</em></figcaption></figure>
<p>The update also referenced a cooling macroeconomic environment potentially offering few volatility cues for markets.</p>
<p>The United States Federal Reserve remains hawkish, and officials have maintained that further interest rate hikes will come this year despite inflation showing a consistent downtrend.</p>
<p>“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,” it explained.</p>
<blockquote><p>“This means that while falling inflation has been getting the market excited, for the Fed with their 2% inflation target blinkers on &#8211; its close but probably still not enough for rate cuts.”</p></blockquote>
<p>When it comes to the principal catalyst for BTC price strength over the past month — the potential U.S. approval of the first Bitcoin spot-based exchange-traded fund (ETF) — there is likewise no imminent decision due, QCP added.</p>
<h2>$30 million Binance ask sparks concerns</h2>
<p>Elsewhere, traders on the day continually raised the possibility of a fresh BTC price correction.</p>
<p><strong><em>Related: Bitcoin analyst flags $32.5K launchpad zone for BTC price</em></strong></p>
<p>William Clemente, a co-founder of Reflexivity Research, revealed data showing that futures traders were far from universally bullish on Bitcoin.</p>
<blockquote>
<p lang="en" dir="ltr">&#8220;Everyone is bullish&#8221; </p>
<p>Quarterly futures basis says otherwise <a href="https://t.co/eXRa36LwS2">pic.twitter.com/eXRa36LwS2</a></p>
<p>— Will Clemente (@WClementeIII) <a href="https://twitter.com/WClementeIII/status/1676349470945030144?ref_src=twsrc%5Etfw">July 4, 2023</a></p></blockquote>
<p>Keith Alan, a co-founder of monitoring resource Material Indicators, said he was “expecting a pullback” as a new block of resistance appeared on the Binance order book at $36,000.</p>
<p>“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,“ part of the commentary <a href="https://twitter.com/KAProductions/status/1676257086282293248" target="_blank" rel="noopener nofollow">stated</a> alongside a chart showing the $30 million ask wall.</p>
<figure><img decoding="async" src="https://s3.cointelegraph.com/uploads/2023-07/394085da-b676-4138-bf84-296def112708.png" /><figcaption><em>BTC/USD order book data on Binance. Source: Keith Alan/Twitter</em></figcaption></figure>
<p>Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading near $30,800 at the time of writing.</p>
<figure><img decoding="async" src="https://s3.cointelegraph.com/uploads/2023-07/a5269bd7-4bd7-4c26-9c45-4b880b0a1914.png" /><figcaption><em>BTC/USD 1-hour chart. Source: TradingView</em></figcaption></figure>
<p><strong><em>Magazine: How smart people invest in dumb memecoins: 3-point plan for success</em></strong></p>
<p>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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