The Bitcoin price successfully rose above the bear trap in which it was stuck for the first few days of the month. With the recent recovery from the lows around $23,500, the price rose marginally and is currently facing a major hindrance at $26,000. The star token previously also faced difficulty surpassing these levels and ended up maintaining a prolonged consolidation. This resulted in a short-lived breakout, which compelled the annoyed bears who were waiting to extract profits, causing the BTC price to lose almost all of its gains.
Currently, the BTC price is moving in the support zone of around $26,000 after leaving behind a bear trap. Generally, the volume nowadays is recorded at its lowest during the weekends, due to which no specific price action was witnessed. Besides, considering the Elliot waves, the token has successfully completed its five downward waves and begun with the corrective waves.
Hence, now it can be assumed that the BTC price may certainly break above the descending channel as the regular divergence between volume and price has reached two consecutive bottoms.
After witnessing a major plunge in the mid of August, the price began to trade within a descending channel. However, after rebounding from the lower support of the channel, the BTC price maintained an ascending trend and was about to test the resistance of the channel. On the other hand, the stochastic RSI is flashing bearish signals, which indicates the price could face a short-term pullback.
Therefore, the Bitcoin price is likely to drop back to $25,500 before triggering another bullish wave beyond $26,300.
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