Early in the American session, Bitcoin is trading around 64,334, approaching a strong resistance zone and trading within the bullish trend channel forming since September 6.
Technically, we see an exhaustion of bullish strength. If Bitcoin fails to consolidate above $65,000, we could expect a technical correction to occur. Therefore, the price could reach 2/8 of Murray around 56,250 in the short term.
On the other hand, if Bitcoin reaches 5/8 Murray around 65,625, it could be seen as a signal to sell, since technically, it has been showing overbought signs since September 13. We believe this could lead to a strong technical correction in the coming days.
In turn, a sharp break of the bullish trend channel around 63,163 could be seen as a clear signal to sell. Besides, with a consolidation below 62,500 on the H4 chart, Bitcoin could enter a bearish phase and we could expect the price to decline to the psychological level of $50,000 in the medium term.
