Bitcoin has been trending higher on its 1-hour time frame as price formed higher lows and higher highs inside an ascending channel. The mid-channel area of interest seems to be holding and the price might be due for another dip to support.

The 100 SMA is below the longer-term 200 SMA to indicate that the path of least resistance is to the downside or that resistance is more likely to hold than to break. In that case, bitcoin might still fall back to the channel bottom around $10,300 even as it trades above both moving averages that are holding as dynamic support.

RSI seems to be turning back up to signal a return in bullish momentum, possibly enough to take bitcoin back up to the channel top around $11,200. Stochastic is also turning higher after making it halfway down, signaling that buyers are still putting up a fight.

BTC/USD Chart – TradingView

Bitcoin is struggling to keep up its climb on the lack of major market catalysts, keeping traders on edge for any possible updates that could bog it down. For one, there is still some unease regarding stricter regulation that tends to erase gains.

Still, fundamentals remain positive as the Bakkt launch in September approaches and traders are looking forward to an influx of institutional funds. Of course, this surge in volumes could also have a downside effect on prices, especially as bigger market players could limit any large spikes.

Another factor that could keep bitcoin and other cryptocurrencies supported in the near-term is the pickup in risk aversion owing to geopolitical risks, like worsening trade tensions and Brexit among others. This increases the likelihood that central banks could stay on their easing cycles for much longer than previously expected, thereby dampening demand for fiat currencies as well.

Images courtesy of TradingView

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