On Thursday, the trading price of Bitcoin (BTC) was not a promising sight for investors. Despite the strong buying sentiments, the bulls were not able to achieve their goal of pushing Bitcoin to a higher level.
As the trading day began, the trading price of Bitcoin continued to grow higher. However, the situation was about to change for the investors very soon as they would find themselves outnumbered by the sellers.
Bitcoin Failed to Surge over $17,000
As investors started to pour in money in favor of Bitcoin’s rally, the price of the asset moved higher. It was expected that they would manage to push its price over $17,000.
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However, as the price of Bitcoin approached the $17k mark, things started to look much more complex than expected. The sellers started to rally and they were ready to push back the buyers with their selling efforts.
They started selling Bitcoin on a much faster scale than the bulls could buy it. This ended up pulling the trading price of Bitcoin to a lower level.
The initial trading price of Bitcoin on that particular day was $16,964.59, which was very close to the $17k level.
It was expected that the bulls will be able to reach the level with quite ease and then move BTC over that level.
However, with the bears selling BTC on a larger scale, the price of the largest crypto moved downwards. By the mid of the day, the asset price had ended up falling to a low of $16,789.75.
Why the Drop?
Just when things were moving in the right direction, Bitcoin ended up facing a downtrend. This raised many concerns as to why the sellers gained so much power all of a sudden.
The analysts wanted to understand what had caused the strength of the bears to increase all of a sudden. This happened as the US Feds made the announcement of keeping up the interest rate hikes.
By doing this, the US Feds confirmed that the value of the dollar would continue surging. With the dollar gaining strength, it is quite obvious that the rest of the assets against the dollar would face a downtrend.
This eventually meant that the investors were going to face losses if they stuck with Bitcoin. Knowing this fact, the investors started to sell Bitcoin and held onto enough of them so they do not feel much pressure.
This ended up causing a dip in the trading price of the asset and now, the asset is consolidating at a lower level.
It is not known how far the Feds would go increasing the interest rates. Until there is a rate drop, the bulls cannot feel full strength coming back to them.
Until then, it will be the bears with the ball in their court. They will be able to steer the price of Bitcoin in their favor. If the bulls want to push Bitcoin higher, they will need to come up with a lot of strength.
What does the RSI Say?
Despite the recent consolidation, the Bitcoin relative strength index is still in bullish territory. For now, it has become stagnant and is not showing any movement.
This means that the bulls still have an opportunity to relaunch a rally and try to push Bitcoin’s price higher. If they do it, then the RSI may once again, start moving in the bullish zone.
It may continue surging and may hit the resistance level at 55, while it is currently hovering around 51. Hitting level 55 would be a challenge but if the bulls prevail, they are looking at a surge past the $17k level.
If the bulls are not able to retrieve their lost confidence, then the bears will keep pulling Bitcoin prices lower. In this particular case, their first attempt would be to pull BTC below $16.5k and then pull it down to $16k.