Bitcoin continues to hesitate on its trend as price is consolidating around the top of its descending channels on the short-term and long-term time frames. A break above this resistance around the $9,000 level could signal that bulls are still in the game.

However, the 100 SMA has crossed below the 200 SMA to indicate that the path of least resistance is to the downside. In other words, the downtrend is more likely to resume than to reverse. Price is still trading above the 100 SMA that seems to be holding as dynamic support so far, but a break below this could set off a slide to the channel bottom next.

RSI is slowly edging lower to show that sellers have the upper hand and could keep dragging bitcoin’s price to the support around $6,800 or at least until the mid-channel area of interest at $7,600. Stochastic is hovering around oversold levels, though, and turning back up could signal that buyers might return.

The lack of major catalysts in the cryptocurrency industry has kept traders on edge and bitcoin in consolidation. Market watchers also remain wary of potentially stricter oversight coming from US officials after the recent Congress hearings on Facebook Libra.

Still, it’s worth noting that China continues to shift to a more positive stance in bitcoin as the government acknowledged the potential of blockchain technology last month and the country’s retail giant, Alibaba, is partnering with a crypto rewards app called Lolli. This could lead to a huge expansion of the market, which might then prop up volumes and liquidity, possibly spurring much-needed volatility.

Keep in mind also that longer-term market fundamentals remain positive for bitcoin as traders are awaiting a bull run after the halving of mining rewards starts next year. Still, likely profit-taking before the year comes to a close could keep rallies in check.

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