"Bitcoin bulls are just not in good shape, need a lot more firepower"

Bitcoin is once again locked in at the $42,000 resistance, a price level it managed to break above on Tuesday, reaching a high of $43,120, according to CoinMarketCap data, before retreating below this important control zone for the digital asset. Experts noted, however, that the digital currency continues to consolidate and warn that the bulls are not in control of the price.

"The rebound in risk appetite has encouraged the price, with attention on the next level of resistance, $45,500 - $46,000," indicated Craig Erlam, analyst at Oanda. The expert believed that the next moves will depend entirely on the willingness to take on more risk in the market.

However, for Naeem Aslam, head of analysis at Avatrade, the pullback from a high above $43,000 indicates that "the bulls are just not in good shape". The expert stated that the bulls "need a lot more firepower to drive the price higher going forward." "The issue is that traders are not all aligned," he commented, arguing that the lack of catalysts in the market causes the price to waver.

"In Europe and the US, we have more regulatory control over the status of cryptocurrencies, which is positive for long-term sustainability. However, in Asia, there is not a favorable stance among regulators," he explained, Therefore, "this is the reason why over the past few months, the rallies we see for Bitcoin during European or US sessions are seized as an opportunity to short during Asian sessions."

"The activity in purses also show that the whales are still on the sidelines and the rallies are very much driven by retail customers," the expert pointed out.

"The underlying is moving within what is a symmetrical triangle (falling highs and rising lows). And until the price breaks on one side or the other, we will not have confirmation of what could be the next big move in the trend," stated José María Rodríguez, analyst at Bolsamanía. "As a short-term support zone we have the base of the triangle ($35,000) and as resistance the upper part ($45,300). However, until the price breaks clearly, we will have nothing at all. Everything will remain the same and we do not want to look for the 'excuse' to the movement of the day".

"What seems clear is that only above $46,000 (February highs) with strength will the buy signals in Bitcoin be activated again. And in the meantime, there is nothing to do here," he proclaimed.

From a fundamental standpoint, investors are awaiting the U.S. Securities and Exchange Commission's (SEC) decision to approve its first spot Bitcoin ETF. Yesterday, the agency stated it would extend its window to make a decision on WisdomTree's Bitcoin investment vehicle. Having the approval of the spot Bitcoin ETF will really be a game changer for Bitcoin, and the fact that the SEC did not reject the decision this time has increased the odds of more positive news.