Bitcoin is trading around $67,750, below the uptrend channel forming since February 26, and below the 21 SMA located at 71,417. In the H4 chart, we can see that Bitcoin sharply broke the symmetrical triangle pattern that had formed since the beginning of March. We can see that the crypto is showing signs of a trend change, but for this, Bitcoin should trade below the 3/8 Murray channel.
Over the weekend, Bitcoin could bounce above 68,750. If this scenario occurs, we could expect the price to reach the 21 SMA located at 71,417. It could finally reach the area of the symmetrical triangle that was broken around 73,000.
In the short term, Bitcoin could reach the psychological level of $60,000 around the 200 EMA located at 60,633. If the bearish force prevails and if BTC falls below this area, the outlook could be negative and in the medium term and BTC could reach $50,000.
Bitcoin broke new records for more than two weeks and this consequently caused it to be strongly overbought. The time is right for a technical correction. We reckon that if Bitcoin trades below the 21 SMA located at 71,417, any technical rebound will be seen as an opportunity to sell.
Bitcoin could resume its bullish cycle only if it consolidates above 71,500. Then, it could reach the target of $75,000. The eagle indicator is approaching the oversold zone. Therefore, the coin is likely to consolidate between $66,000 and $72,000 in the coming days. Thus, we will look for opportunities to buy and sell.
