The reason for the current movements of Bitcoin between $110,000 and **$109,000** (or close to it) is often due to a combination of factors, the most important of which are:
1. Speculator movements (short and fast trading)
Speculators enter when a certain price is breached and then sell quickly to realize small profits, causing a sudden rise followed by a rapid decline.
2. Psychological and technical resistance
Levels like 110,000 are considered strong resistance areas, where many traders prefer to sell.
There may be many sell orders at this specific number, causing the price to bounce back when it touches it.
3. Robots and automated trading
There are algorithms that automatically sell at certain levels and buy at lower levels, causing these rapid fluctuations within a narrow range.
4. Lack of strong news confirming the rise
In the absence of significant positive news (such as the approval of a new ETF or a decision from the Fed), the market remains swinging.