At the time of writing, the value of Bitcoin (BTC) is hovering around the support line. However, the support line is close to the ascending channel.
This means that if the trading price of Bitcoin gains enough support, then it will manage to start traveling within the ascending line.
Bitcoin’s Close to Ascending Channel Since August 19
However, the trading price of Bitcoin has been experiencing a particular trend since August 19. This means that the situation has been the same for a while.
Now, the main question is what exactly is causing the trading price of Bitcoin to experience the same trend over and over.
Bitcoin is stuck in a Loop
Although the bulls have successfully defended the support level with quite a resilience, still, it is not enough to make things better. The price of Bitcoin has not been able to climb up to the resistance level.
Despite the efforts, the bulls have not been able to come up with enough force to build up a strong rebound.
Bitcoin is literally stuck in a loop because whenever it manages to hit a higher trading price, its demand diminishes. As the demand for Bitcoin lowers, the bulls stop buying it. Thus, the trading price of Bitcoin ends up falling lower and close to the support line.
Investors Selling Bitcoin at Higher Levels
Just as the trading price of Bitcoin starts to fall hitting a higher level, it suggests that the investors are selling it as soon as it reaches a higher trading price.
This means that the investors are trying to cover their losses and profit from the trades as much as possible.
If this is indeed the case, then the trading price of Bitcoin may rise soon. The investors may gain the confidence of launching strong rallies and the bears may not give much competition.
This would mean that the trading price of Bitcoin is set for higher gains and it will break out of the loop.
Bears have an Edge for Now
As of now, the 20-day EMA for Bitcoin stands at $22,523 but it has started to lose its position. This means that the trading price movement of Bitcoin is in the hands of the bears.
The RSI for Bitcoin is standing at a low of 41. This means that the overall trend for Bitcoin is in bearish hands.
If the bears are able to break through the strong defenses, then the strong support line will be crossed. If that happens, then the trading price of Bitcoin may hit a low of $18,900.
Bulls may achieve a High of $26k
If for some reason, the investors are able to build up a strong buying spree, then Bitcoin’s price fluctuation may end up rising by $26k.