Bitcoin is trading around $115,404, reaching the resistance of the 5/8 Murray line. We believe this level could put pressure on Bitcoin, and we could expect a technical correction towards the 21SMA located at 114,086.
After the sharp drop over the weekend, Bitcoin recovered above $112,000, consolidating above the 4/8 Murray line and surpassing the 21SMA and the 200EMA. This rapid recovery suggests that Bitcoin could rise in the coming days to reach 117,800.
If Bitcoin resumes its bearish cycle, we could expect it to fall below $114,000. Then, it could reach the 4/8 Murray line and 112,500, and even fall to the bottom of the downtrend channel around $111,700.
The eagle indicator has reached oversold levels since August 1. Thus, we believe any pullback in the coming days will be seen as a signal to continue buying.
