Bitcoin Price Caught Between Key Support Levels as Bearish Sentiment Grows

Bitcoin price had a relatively muted day as the digital asset traded between $8,700-$8,885.

Currently, the price remains below the ascending channel trendline and the daily candle closed as a neutral doji, showing bulls and bears are in contention on the direction Bitcoin will take over the short-term.

Despite Bitcoin price finding difficulty in reclaiming $9,000 and re-entering the ascending channel Cointelegraph reported that the majority of top traders at Binance remain long on the top ranked digital asset on CoinMarketCap and a number of large cap altcoins.

Investor sentiment takes a knockInterestingly, data from TheTIE, a crypto-oriented alternative data provider, shows that investors are growing increasingly bearish about the short-term price prospect of Bitcoin price.

Currently the indicator reads 'Fear' and is at 39, a sharp drop from last week's 'Neutral' reading of 50.Last week as Bitcoin price repeatedly bounced off the ascending channel trendline investors felt some reassurance in the digital asset securing a close above $9,300 as the channel had provided strong support for more than two months.

Once the price closed last week below the channel bullish sentiment dropped.

A close above the 20-MA is neededDespite remaining below the ascending channel and $9,000, Bitcoin price is beginning to notch daily higher lows and the MACD histogram hints at a decrease in bearish momentum.

For the past few days $9,000 and $9,100 have been resistance levels the price struggles to overcome and the price has been pinned below the 20-MA since dropping from $9,800 on May 20.Currently the price is working its way back toward $8,900 and a push above $8,950 would open the door for a quick move to $9,100 but resistance at this level and $9,200 could lead to a quick rejection.

As mentioned earlier, Bitcoin price is now painting higher lows on the daily-4-hour chart and buyers have bought the recent dips to $8,700.

In the event that Bitcoin drops below $8,700, the volume profile visible range shows $8,550 as the last level of support before the price could drop to the $7,700-$7,450 range.