ALERT: Be Ready for a NEW Bitcoin Bull Trap! – Bitcoin Price Prediction Today

Why Bitcoin is Stuck at $35,000 Resistance Level

Bitcoin has been unable to break through the $35,000 resistance level in recent days, causing frustration among traders. This resistance level has proven to be a significant barrier for Bitcoin, as it has been trading below it for an extended period. Retail traders are starting to notice a pattern forming, with some seeing a potential ascending triangle on the charts. However, it is important to consider other factors before making any trading decisions.

Potential Bull Trap Formation

While the ascending triangle pattern may suggest a higher probability of a breakout to the upside, it is crucial to exercise caution. Jumping into a long or buying position after a significant push towards the upside is not advisable. It is essential to wait for a clear sign of a breakout or a pullback before entering a trade. Retail traders who enter long positions at the current highs may find themselves trapped if the breakout fails to materialize.

Volume Analysis

Another factor to consider is the volume. As Bitcoin consolidates below the resistance level, the volume has been steadily decreasing. This suggests a lack of buying pressure and a potential lack of interest from traders. Lower volume during consolidation can indicate a lack of conviction from market participants, making it riskier to enter long positions.

Candlestick Patterns on Higher Time Frames

Analyzing candlestick patterns on higher time frames can provide valuable insights into market sentiment. On the daily time frame, Bitcoin has been forming bearish pin bars at the monthly resistance level. These candlestick patterns, with long wicks towards the upside, indicate a struggle to sustain upward momentum. This lack of bullish candlestick patterns does not bode well for Bitcoin’s immediate price action.

Market Indicators

Examining market indicators can provide further clarity on Bitcoin’s current situation. The CBD indicator shows a bearish divergence, with lower highs forming on the Bitcoin price itself while the indicator forms a higher low. This suggests that selling pressure is being absorbed by bullish traders. However, it is important to note that the indicator can change quickly, so it is crucial to wait for confirmation before entering a trade.

Stochastic Oscillator Analysis

The stochastic oscillator, a lesser-known indicator, also provides valuable insights. On the daily time frame, Bitcoin is forming a double top pattern, historically not a bullish sign. Additionally, on the weekly time frame, Bitcoin is approaching the top end of the oscillator, which has previously resulted in downward price movements. These indicators suggest that caution is warranted when considering long positions at the current resistance level.

Why Accumulating Altcoins is Still a Viable Strategy

Despite Bitcoin’s current resistance, there is still time to accumulate altcoins. The Total 2 and Total 3 charts, which represent the total cryptocurrency market cap excluding Bitcoin, show that altcoins are still consolidating. This indicates that the altcoin season has not yet started, providing an opportunity for investors to accumulate altcoins before potential price increases. Cardano, Polkadot, Chainlink, and Solana are among the altcoins that have yet to see significant upward movements.

Conclusion

In conclusion, Bitcoin’s inability to break through the $35,000 resistance level has raised concerns among traders. While an ascending triangle pattern may suggest a potential breakout, caution is advised due to factors such as volume analysis, candlestick patterns, and market indicators. It is important to wait for clear confirmation before entering any trades. Additionally, the altcoin market still offers opportunities for accumulation before the Bitcoin halving event.

Frequently Asked Questions

Q: Why is Bitcoin struggling to break through the $35,000 resistance level?

Bitcoin has been unable to break through the $35,000 resistance level due to a lack of buying pressure and a potential lack of interest from traders. The volume has been decreasing, indicating a lack of conviction from market participants.

Q: Should I enter a long position at the current highs?

Entering a long position at the current highs is not advisable. It is important to wait for a clear sign of a breakout or a pullback before entering a trade. Retail traders who enter long positions at the current highs may find themselves trapped if the breakout fails to materialize.

Q: What indicators should I consider when analyzing Bitcoin’s price action?

When analyzing Bitcoin’s price action, it is important to consider volume analysis, candlestick patterns on higher time frames, and market indicators such as the CBD indicator and stochastic oscillator. These indicators can provide valuable insights into market sentiment and potential price movements.

Q: Is now a good time to accumulate altcoins?

Yes, now is still a good time to accumulate altcoins. The Total 2 and Total 3 charts show that altcoins are still consolidating, indicating that the altcoin season has not yet started. This provides an opportunity for investors to accumulate altcoins before potential price increases.

Q: What should I do if I want to trade with a short position?

If you are interested in trading with a short position, it is important to wait for a clear sign of weakness in Bitcoin’s price action. This could include a swing failure pattern or a liquidity grab. Only then should you consider entering a short position with a stop loss above the previous highs to manage risk.