Bitcoin continues to rebound from its low of 26,554, and is currently trading around 30,988.
Bitcoin lost 61% from its all-time high of 68,825 to a recent low of 26,554. This massive decline is a consequence of rising US interest rates and risk aversion among investors.
According to the 4-hour chart, the price of BTC is located within a short-term uptrend channel formed on May 11 and above the 21 SMA located at 29,756.
In the short term, the outlook is positive for Bitcoin and it is likely to reach the top of the uptrend channel at around 33,000 in the coming days or it could even reach 3/8 Murray at 34,375.
BTC/USD has strong resistance at 2/8 Murray around 31,250. Below this level, Bitcoin could make a technical correction towards 29,756, which coincides with the bottom of the uptrend channel.
The 200 EMA located at 36,700 will be the key for BTC. This level could offer strong resistance. If it fails to overcome it, BTC will have an opportunity to resume the main downward movement.
On the contrary, with a sharp break and close on daily charts below 29,756, Bitcoin could resume its downward movement and could reach the support 1/8 Murray at 28,125 and could even reach 0/8 Murray around 25,000.
Our trading plan for the next few hours is to buy BTC above 31,250 or in the event of a technical bounce around 29,756, with targets at 33,000 and 34,375.
The eagle indicator is giving a positive signal. It is likely that Bitcoin will recover in the coming days due to rising positive market sentiment and the price could reach the overbought zone.
