Bitcoin price (BTC/USD) has dropped below 21 SMA located at 41,748 and below the level 5/8 Murray at 40,625. It is currently trading at 40,298, bouncing after having reached the low of 39,162.
Since the beginning of April, Bitcoin began a technical correction from the high of 48,200 to the level of 39,116,. This correction could be a signal that the bulls were waiting to resume buying around the psychological level of $40,000. We could have an opportunity to buy with goals at the psychological level of $50,000,
However, the outlook for Bitcoin remains bearish because on the 4-hour chart it is below the 200 EMA located at 43,169 and below the 21 SMA located at 41,748. As long as it remains below these moving averages the outlook will be negative and we could expect it to fall to 37,500 and 34,250 in the next few days.
On the contrary, a close above the 6/8 Murray around 43,750 could change the short-term trend and set the stage for a recovery of Bitcoin. We could expect it to reach 7/8 Murray at 46,875 and 8/8 Murray at $50,000.
The eagle indicator has reached the oversold zone. An upward movement is likely to follow in the next few hours and the price could reach the area between 41,748 and 43,167.
