Bitcoin (BTC) will be weeks from a “sharo rally” to $34,000, trading platform QCP Capital believes.
In the latest market update released on August 15, analysts said the coming weeks include a key decision point for BTC price action.
BTC price due for September “end point”
With Bitcoin still rangebound after months of uncertain behavior, market observers are eager to predict the return of some kind of market trend.
For QCP Capital, September is the key month in the calendar, thanks to BTC/USD completing an upward wedge construction that began at the end of the 2022 bear market.
“On the charts, the wedge pattern that BTC has been trading since its 15k low reached its first termination point at the start of Sep,” part of the update explained.
QCP noted that the specific area of interest is $29,300 – exactly the current center for the Bitcoin spot price.
“There will be a sharp rally that will take us to the 34k resistance – like the last three times that kissed the trendline of support this year?” it goes on about the rise of the wedge.
“We think it could be a quiet few weeks before we find out. We’re looking to buy our short end-Sept calls and long end-December vols in due course.
The QCP outlook sounds like there are a variety of more optimistic takes on BTC price strength for the short term, including one that gives October as the deadline for the return of the 2023 Bitcoin bull market.
As reported by Cointelegraph, however, market expectations are divided on the topic, with some warning that new lows may still be entered before a broad recovery takes place.
There is no macro BTC price catalyst in sight
Responding to macroeconomic trends, QCP meanwhile argues that significant change is yet to be seen, echoing the crypto status quo.
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“The last time trading was this compressed, it was during the crypto winter of 2018 and 2019, and it required a change in the macro environment to revive the market,” it wrote.
Bitcoin volatility is at a challenging historic low, as shown by the Bitcoin Historical Volatility Index (BVOL) data from TradingView.
“While the game changer in the macro environment is yet to be seen, there are some short term catalysts coming into the crypto calendar late next month, including Mt Gox, GBTC, a possible SEC ruling on Blackrock/Fidelity applications, and some potential centralized crypto exchange and stablecoin news,” QCP continued.
Among other things, analysts refer to the September deadline for comment on the initial Bitcoin spot price exchange-traded fund (ETF) applications – widely considered a turning point for the industry.
Europe’s first Bitcoin spot ETF began trading on August 15, held by Fidelity Investments.
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This article does not constitute investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making a decision.