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Bitcoin trading seems to have relaxed a bit following Monday’s recovery, when the price of BTC went from $7,790 to close the day above $8,200.
Since then, Bitcoin has not been able to break through the small and, frankly, boring horizontal channel of roughly $200, bouncing between $8100 and $8280—once again providing a signal to traders that the break-even point in today’s market is within this thin band.
The trading volume is not surprising either. And except for a brief attempt by the bullish few to push Bitcoin to $8360, trading has remained relatively stable, at least for scalpers and day traders.
The Relative Strength Index (RSI) is also at a medium level, indicating a lack of enthusiasm among traders to sell or buy throughout the day.
The outlook, however, looks a little more interesting for position traders or long term hodlers.
Bitcoin has been in a downward channel for the last few weeks with a few brief exceptions, and so far has not shown any signs of wanting to break this channel.
Likewise, the threat of a “death cross” remains, and if this happens, many technical analysts fear the possibility of a new and prolonged bearish trend.
It’s worth noting that Bitcoin has never had such a low RSI since the downstream channel began. This means that sellers are currently reaching a point where they would be exhausted from selling Bitcoin at bargain prices.
If so, Bitcoin could start a new bullish movement even within the channel and touch the ceiling at $9,700, before a new fight between bulls and bears begins to see who dominates the market.