On the daily chart, bitcoin is trading above the psychological level of $30,000. We also note that BTC has formed a symmetrical triangle, which has a bullish bias.
If Bitcoin settles above 30,000 in the next few hours, it is likely to reach the resistance of 2/8 Murray at 31,250 and 21 SMA at 31,725.
Since the end of the last week, the market risk sentiment has changed and the US dollar is suffering losses, which is a positive sign for Bitcoin and a recovery could happen. If BTC consolidates above the 31,780 (21 SMA) in the next few days, we could expect it to reach 34,375 (3/8 Murray) and even the 200 EMA around 41,358.
Since May 14, the eagle indicator has reached the extremely oversold zone, around 5-points, which is a sign of an imminent rebound. The rebound in Bitcoin has been partially completed but without a volume. So, it is likely that the market will try to recover a little more loss and reach 34,375 in the coming days.
In case Bitcoin faces the 21 SMA and fails to break out and consolidate above it, it will be a signal to sell and BTC can probably drop below 30,000 and reach the support 1/8 Murray at 28,125.
Above 2/8 Murray, the bearish pressure could ease and the market could turn more bullish which could benefit the bulls and they could look for the target around the psychological level of 40,000 and even the 200 EMA around 41,358.
Our trading plan for the next few hours is to buy Bitcoin above the psychological level of $30,000. The eagle indicator supports our bullish strategy.
