For several months, the trading price of Bitcoin (BTC) has been moving in a downward direction. It was a few months back when the bulls started to push the price of Bitcoin but things did not work out well in the long term.
Bulls Failed to Sustain Bearish Pressure
It was from the month of June that the bulls were attempting to push Bitcoin’s price higher. The bulls launched a strong buying rally back in the month of June.
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When the bulls launched their buying rally back in June, Bitcoin’s trading price was at a low of $17,622 per BTC. Following the strong buying efforts of the bulls, Bitcoin managed to rise over the 200-week SMA.
Although the bulls were persistent with their buying efforts, the bears were not ready to let them prevail so easily. It was a fight between both sides to prove which side was better than the other.
The price chart for Bitcoin shows that both sides continued buying and selling Bitcoin from their end. However, it was the sellers who were able to take charge.
The bulls failed to support the value of Bitcoin at higher levels and Bitcoin’s price ended up taking a fall.
Another Attempt from the Bulls
It was just last week when the bulls made another attempt and tried to push Bitcoin’s price over the 200-day SMA, which translates to $23,387.65. However, they were not able to win against the bears as they stood their ground.
With the recent failed attempt made by the bulls, it is confirmed that the 200-week SMA is a strong resistance mark for Bitcoin. This is because the bears are protecting this level with great vigor.
In the upcoming days, if Bitcoin is able to hit and cross the particular mark, then it will be a sign of a strong bullish run.
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Bitcoin’s Bearish Run
Although it seemed that things could get better for Bitcoin, the Feds recently shared the CPI data for August, which was not promising at all.
As the Feds hinted at a possible spike in the interest rates in near future, it forced investors to limit their investments in assets such as Bitcoin.
There is a highly likely chance that the bears may use this situation to their benefit and pull Bitcoin’s price below the $17,622 mark.
If they are able to make it happen, their next move would be to bring its price below the $15,000 mark. Eventually, their goal would be to lower Bitcoin’s price to $14,000.
Bitcoin’s Bullish Flight
On the contrary, if the bulls do manage to push Bitcoin over the $20k mark, their next target would be to take it beyond the 200-week SMA.
In case the inflation rates come under control and the Feds announce a decrease in the interest rates, then the bulls may rally Bitcoin. In this particular case, Bitcoin’s trading price may rise over the $25k per BTC mark.