Why is Bitcoin price stuck?

Yashu Gola9 hours agoWhy is Bitcoin price stuck?Bitcoin is a volatile asset, but BTC price can stay flat for days, weeks and even months for various reasons.14752 Total views77 Total sharesListen to article 0:00Market AnalysisJoin us on social networksThe price of Bitcoin (BTC) is fluctuating inside a narrow trading range for several days, and Aug. 2 is no different. Why is Bitcoin price stuck?

Bitcoinprice fell nearly 1% to around $29,500 on the day. Still, the move downside was part of a flat market trend that started a week ago, wherein the price has traded inside the $28,850-29,660 range.BTC/USD four-hour price chart. Source: TradingView

The sideways trend follows Bitcoin"s 4% drop below $30,000 last week, primarily due to the Federal Reserve"s interest rate hike. Rate increases have historically been bearish for non-yielding cryptocurrencies like Bitcoin.

Nonetheless, Wall Street economists anticipate a rate hike pause in the next Fed meeting in September, which may be limited Bitcoin"s downside below $29,000.

On the flip side, the BTC struggles to stay above $30,000 — a psychological resistance level — due to broader market risks. That includes regulatory uncertainty around Binance — the world"s largest crypto exchange by volume — and a recent Defi exploit costing $47 million.

The ongoing bias conflict in the Bitcoin market has coincided with depleting institutional interest. According to CoinShares" weekly report, investors withdrew about $19.4 million from Bitcoin-based investment funds in the week ending July 28.Net flow into crypto funds by asset. Source: CoinShares

"93% of the outflows were from long-Bitcoin investment products, while short-Bitcoin saw its 14th consecutive week of outflows totaling $3.1 million," wrote James Butterfill, investment strategist at CoinShares, adding:"This suggests investors have been taking profits in recent weeks, with the sentiment for the asset overall remaining supportive."Bitcoin price outlook for August

From a technical standpoint, Bitcoin currently holds above its 50-day exponential moving average (50-day EMA; the red wave) while eyeing a close above $30,000, its immediate resistance level.

Related: ETF analyst raises spot Bitcoin ETF approval chances in the US to 65%

If the price breaks above the $30,000, then BTC"s likelihood of rallying toward $31,500, a local peak level, is high for the month of August.BTC/USD daily price chart. Source: TradingView

The upside target seems valid as long as BTC price trades above its multi-month ascending trendline support. Nonetheless, breaking decisively below the 50-day EMA and the ascending trendline risks crashing Bitcoin toward its 200-day EMA (the blue wave) near $27,000.

This level served as support during the March-April session earlier this year,

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.# Bitcoin# Bitcoin Price# Bitcoin Analysis# Markets# BTC Markets# Tech Analysis# Market AnalysisAdd reactionAdd reactionRelated NewsWhat are NFT royalties, and how do they work?Crypto trader weighs in on possible Bitcoin extinction scenariosWe need to fundamentally change how smart contracts operateBitcoin spending copies history as metric flags ‘1st stage bull market’Bitcoin price is ‘stuck’ at $30K — Here are 3 reasons whyBitcoin price is down, but data signals that $30K and above is the path of least resistance