Bitcoin Hits Key Resistance Level and Faces Uncertainty: What’s Next?

Interpreting the Multiple Confluences

The Trend Line/Expanding Wedge/Inverted Triangle

Bitcoin recently reached a crucial level marked by various patterns and lines. While some analysts find meaning in these formations, others remain skeptical, citing their subjective nature.

The Prior All-Time High

The lingering shadow of the 2021 all-time high continues to loom over Bitcoin. This level has acted as a significant barrier, hindering the much-anticipated price surge.

The Final Volume Profile Zone

Another critical area where Bitcoin’s price met resistance is the final volume profile zone. This obstacle presents a nuanced yet substantial challenge for the cryptocurrency’s upward momentum.

What’s the Next Move?

With the current level in focus, the outlook for Bitcoin appears binary. A breakthrough here could propel the price to $74k, with minimal obstacles in between. However, a failure to rise above this point may lead to a prolonged consolidation or a retreat towards the $43k range.

Strategic Positioning

The Long-Term Short Position

Despite the recent developments, the author maintains a bearish stance on Bitcoin, opting to short the cryptocurrency through the inverse ETF BITI. Additional futures contracts were recently added to this position, aligning with the ongoing thesis.

Traders are advised to proceed carefully and remain vigilant in navigating the uncertain waters of the cryptocurrency market.