Bitcoin (BTC/USD) is trading below a downtrend channel formed since March 27.
The level that BTC reached was 48,206. There were several occasions that it has been testing this channel, however, it failed to break it and consolidate above this level.
Today at the opening of the Asian session, BTC was trading below the 7/8 Murray (46,875) and below the 21 SMA located at 46,021.
Bitcoin fell from the area 48,206 area to the zone 44,188, ending the last day of the month with a bearish tone but with its positive bias during the month of March.
Historically, April has been the best month of the year for the performance of the S&P 500 and the Nasdaq-100. If history repeats itself and the correlation between the US stock markets and Bitcoin continues, it could be a good sign for the crypto markets in the short term.
Rising risk aversion and fears regarding the Russian invasion could cause investors to take refuge in gold, exerting downward pressure on the Nasdaq-100 and the S&P-500 and consequently Bitcoin could also fall towards the psychological level of 40,000 and up to 37,500.
Bitcoin has strong support on the 4-hour chart above the 200 EMA located at 43,201. As long as BTC continues to trade above this level, a move higher is likely in the coming days and it could reach the psychological level of 50,000.
BTC has a strong barrier at 48,206 and the upside is likely to accelerate only if it breaks and closes above this level on the daily chart. Bitcoin could reach 8/8 Murray located at 50,000. But if the price crosses this level and exceeds it, BTC is expected to reach the +1/8 Murray zone around 53,125.
Contrary to this assumption, if the price continues the current correction and breaks the 200 EMA located at 43,201, BTC could drop to 4/8 Murray at 37,500 and even to 31,250 (2/8 Murray).
Our trading plan for the next few hours is to sell below the 7/8 Murray located at 46,875, with targets at 6/8 Murray at 43,750 and 43,201(200 EMA). The eagle indicator is showing a negative signal and the bearish movement of Bitcoin is likely to continue in the coming days.
