Bitcoin continues to trend higher inside its ascending channel on the 1-hour time frame with its higher lows and higher highs since the start of June. The price is currently testing the top of the channel and might be due for a break higher.

The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside. In other words, the uptrend is more likely to gain traction than to reverse. This could also mean that resistance is more likely to break than to hold. In that case, bitcoin could be in for a steeper climb or a rally that’s at least the same height as the flag mast, which spans $8,000 to $8,250.

However, RSI recently reached the overbought zone and is starting to turn lower to indicate a return in selling pressure. The oscillator has room to head south before reaching the overbought zone, which suggests that bears could have the upper hand for a while. Stochastic hasn’t quite reached the overbought region to signal exhaustion among buyers, but the oscillator appears to be topping out and might head south as well soon.

The price could retreat to the dynamic support around the moving averages, with the 100 SMA at the $8,000 level and the 200 SMA at $7,900. A larger correction could retreat to the bottom of the channel around $7,700.

There are plenty of factors that could support bitcoin price gains, but there is also a lot of hesitation in the market currently. According to crypto podcaster and trader Brian Krogsgard:

We’re basically trying to see if we are going to just keep consolidating at this higher level and push for a new leg up, or if it’s truly a topping pattern. A key level would be if we breach above around $8,200 on a daily level.

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