Sellers Regain Short-Term Advantage in Bitcoin Trading
The price action of Bitcoin is telling traders that neither buyers nor sellers have taken firm control of the broader range, but the shorter-term bias has tilted back in favor of the sellers.
Bitcoin has been trading in an up-and-down range since August 21, with the lower boundary coming between $75,688 and $76,229, and the upper boundary between $81,517 and $82,281.
Sellers had their chance to push through the floor earlier this week when Bitcoin tested the lower support area between $75,688 and $76,229, but they could not sustain a break.
When a market tests an important support area and fails to break it, short sellers may begin covering positions while dip buyers step in, which helped propel Bitcoin higher during today's trading.
Buyers then had their opportunity to take greater control, moving the price toward the week's high near $80,500, but the rally stalled ahead of that level and just below the psychologically important $80,000 mark, reaching a high of $79,837.