Bitcoin is trading around 61,680 within a bearish trend channel forming since May 2, below the 200 EMA, and below the 21 SMA. Bitcoin is expected to continue its decline in the coming hours and could reach the psychological level of $60,000 and could even drop to 5/8 of Murray located at 59,375.
Bitcoin attempted to break the top of the downtrend channel and consolidate above the 200 EMA but failed. Since then, we have seen several bearish sessions. This means that if Bitcoin consolidates below 61,500, the outlook could remain negative and the price could even reach 2/8 Murray located at 56,250.
In case Bitcoin consolidates above $62,000, the outlook could be positive and we should expect a sharp break above 4/8 Murray located at 62,500. The crypto could even consolidate above the 200 EMA and make a sharp break above the downtrend channel.
If this scenario occurs, we could expect a resumption of the bullish cycle and Bitcoin could reach 5/8 Murray at 65,625 and could finally reach 6/8 Murray at 68,750.
Since May 9, the eagle indicator has been giving an overbought signal. We believe that in the coming days any pullback and as long as it trades below 63,500, Bitcoin could be under downward pressure.
