Bitcoin continues to climb as it forms higher highs and higher lows inside an ascending channel on the 1-hour chart. Price is testing the resistance and might be due for a correction from here.

Using the Fibonacci retracement tool on the latest swing low and high shows that the 61.8% level lines up with the channel bottom and an area of interest at the $3,800 level. The 38.2% level is closer to the mid-channel area of interest that might also serve as support in a shallow correction.

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. The gap between the moving average is also widening to signal strengthening bullish momentum.

The 100 SMA is close by and might actually be enough to keep losses in check on a strong uptrend. A larger retracement, on the other hand, could last all the way until the 200 SMA at the channel bottom. A break below this, however, could indicate that a reversal is in the works.

RSI is still heading south so the price might follow suit while sellers are in control. The oscillator just crossed the 50 mark and has room to go before hitting the oversold region to signal exhaustion. This means that bearish pressure could stay on until the next support zones are tested and oversold conditions are seen.

Stochastic is also moving lower to signal that selling pressure is in play, but this oscillator is nearing the oversold region and may be looking to turn higher to indicate that buyers are returning.

If any of the support areas hold, Bitcoin could resume the climb to the swing high around $4,100 and beyond. Much of the gains are being attributed to anticipation for institutional volumes stemming from Fidelity’s platform launch slated for March.

Images courtesy of TradingView