Bitcoin continues to consolidate in a small ascending channel on its 4-hour time frame as it makes its way up to test the longer-term descending trend line resistance.

The 100 SMA is below the slower-moving 200 SMA to confirm that the path of least resistance is to the downside or that the selloff is more likely to gain traction than to reverse. However, the gap between the indicators is narrowing to show that selling pressure is weakening and that a bullish crossover might follow.

RSI is heading south to show that bearish momentum is in play, but the oscillator is approaching the oversold region to show that sellers could be exhausted soon. Turning back up could keep the short-term uptrend going and take price up to the trend line around $8,500 or the 200 SMA dynamic inflection point.

Stochastic is also heading down so the price could follow suit while sellers are in control. This oscillator has a bit more room to move lower before reflecting oversold conditions.

BTC/USD Chart – TradingView

Bitcoin is on weak footing following the rejection of the ETF by the SEC and reports that the Chinese government is moving closer to having its state-backed cryptocurrency.

The US regulator has been rejecting bitcoin ETF applications for the most part of the past couple of years, leading investors to doubt that approval would happen at all in the near future. Still, the SEC has reopened its public comment period as investment management firm Wilshire Phoenix and NYSE Arca filed an amendment to their proposal earlier this month.

According to the filing, members of the public must submit comments within 21 days of the notice’s publication in the Federal Register.

Meanwhile, the possibility of seeing Chinese cryptocurrency could drain the biggest market of bitcoin, thereby reducing demand for altcoins in general.

Images courtesy of TradingView

The post Bitcoin Price Analysis: BTC/USD Bearish Flag or Correction? appeared first on BitcoinerX.