Bitcoin could be due for a bounce as it approaches the bottom of a newly-forming ascending channel visible on its 1-hour time frame. Price could bounce off the $3,900 level and carry on with its climb to the channel resistance.

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 climb is more likely to gain traction than to reverse. However, the gap between the two indicators is narrowing to reflect weakening bullish momentum and a potential bearish crossover.

If that happens, the price could attempt to break below the channel bottom and spur a reversal from the short-term climb. After all, Bitcoin is moving below both moving averages as an early indicator of selling pressure.

RSI is turning higher from the oversold region, though, so buyers might still have a chance to defend the floor. This could take Bitcoin up to the mid-channel area of interest near $4,000 or the channel top at $4,100.

Stochastic has also reached the oversold territory to reflect exhaustion among sellers. Turning back up could confirm that bulls are ready to charge again.

Bitcoin has been struggling to keep up its climb as enthusiasm for bullish forecasts and anticipation for institutional inflows is fading. Traders had been looking forward to the Fidelity platform launch this month but the halfway mark is approaching and there have been no major developments yet.

Any delays could further lead to unwinding that might drag bitcoin to longer-term support levels where buyers might still be waiting. On the other hand, pushing through with the launch could revive bullish interest and the pickup in volumes would likely keep prices afloat as well.

For now, profit-taking has strongly been in play and it doesn’t help that more analysts are calling another potential bottom in prices.

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