Bitcoin is trading around 112,500, an important support area where we believe it could resume its bullish cycle in the coming hours, only if the price consolidates above this area.
If Bitcoin sharply breaks the bearish trend channel, we could expect it to reach the 200 EMA around 114,253 and even reach the 5/8 Murray level around 115,625.
Since September 16th, Bitcoin has been trading within a bearish trend channel formed between the high of 118,000 and the low of 111,000.
Bitcoin will likely continue to fall in the coming days until it reaches the 3/8 Murray level around the psychological level of $110,000.
The Eagle indicator is showing overbought signals and pointing to a deeper decline for Bitcoin in the short term. The key is to watch for the price to trade below 113,261. Then, we will make up a trading plan to sell.
