Bitcoin made a strong bullish move during the American session, reaching the $122,200 level, a key level last seen on August 9. Since then, we have observed that BTC is undergoing a technical correction and is likely to continue its correction until reaching the bottom of the uptrend channel around $120,000.
If Bitcoin fails to break above the 7/8 Murray level or the weekly high of $122,300, this could be seen as a selling opportunity, as we technically observe that it is reaching overbought levels.
If Bitcoin trades below the 7/8 Murray level, located at $121,875, in the coming hours, this will be seen as a selling opportunity, with a target at $119,600 (21SMA).
A sharp breakout of the uptrend channel formed since early August could signal a medium-term trend reversal, and we could expect Bitcoin to reach the 200 EMA around $116,000 and even reach the 4/8 Murray level around 112,500.
