A touch panel includes a substrate, a plurality of first traces, an insulation layer, a plurality of second traces, and a microcontroller. The first traces are disposed over the substrate, the insulation layer is disposed over the first traces, and the second traces are disposed over the insulation layer. The microcontroller is electrically connected to the first traces and the second traces, and is operable to control the first traces and/or the second traces so that the first traces and/or the second traces form open loops or closed loops. Furthermore, a touch sensing method is also disclosed herein.