Bitcoin is trading at 59,597, below the bearish trend channel forming since August 26 and below the 21 SMA. We see a consolidation at about $59,000.
Yesterday during the European session, BTC reached the top of this bearish channel around 61,160. After finding that it is a strong resistance since it also coincided with the 200 EMA, it made a strong technical correction.
During the American session, Bitcoin is trying to break out of this bearish trend channel again which this time coincides with the 21 SMA. If BTC breaks out and consolidates above the psychological level of $60,000, we could expect it to continue rising and the price could reach 61,160 and finally, the key level of 62,500 key at about 4/8 of Murray.
If the bearish force prevails and BTC falls and consolidates below 3/8 of Murray, we can look for opportunities to sell Bitcoin, with targets at 58,200, 57,000, and finally, at 2/8 of Murray around 56,250.
Our outlook is positive, so we seek opportunities to buy since Bitcoin has technically reached oversold levels. So, as long as the BTC price remains above 3/8 of Murray, we can buy above 59,981 (21 SMA).
