Bitcoin is still in correction mode after recently hitting the top of its ascending channel seen on the short-term charts. The price is finding support at the mid-channel area of interest, though, and could be due for a bounce back to the top.

Bulls could aim for the swing high at $4,170 or the channel resistance at $4,200 next. Stronger bullish momentum could spur a break higher and a steeper uptrend. The 100 SMA is above the longer-term 200 SMA after all, indicating that the path of least resistance is to the upside. This short-term moving average is also holding as dynamic support at the moment.

However, RSI is pointing down to indicate that selling pressure is in play and that bears could stay for a bit longer until oversold conditions are seen. Stochastic has just dipped into the oversold territory to reflect exhaustion among sellers but has yet to turn higher to indicate a return in bullish momentum.

With that, Bitcoin could go for a deeper pullback to the 61.8% Fib that’s closer to the channel support. This is also within an area of interest or former resistance around the $4,000 major psychological mark. A break below this, on the other hand, could signal that a reversal from the uptrend is due.

Bitcoin is still waiting on stronger catalysts that could sustain the climb, and many have been pointing out how it’s currently hanging out at make or break levels. There has been a lot of anticipation for institutional inflows but the lack of developments or follow-through has been disappointing for some.

This could leave more room for profit-taking and perhaps a deeper bottom for Bitcoin before the much-anticipated rebound takes place. A few analysts are still maintaining forecasts that the $5,000 could be hit soon, but this might hinge on how the current consolidation breaks.

Images courtesy of TradingView