Bitcoin is trading around $118,750, around 6/8 Murray, and within the bullish trend channel formed on September 28. On the H1 chart, we can see that gold reached the 119,350 level, which coincided with the top of the bullish trend channel.
In the coming hours, we can expect a technical correction for Bitcoin, which could reach the 21SMA around 117,247, and potentially even reach support at the bottom of the bullish trend channel, currently at 116,750.
If Bitcoin consolidates above 118,750, it is expected to reach the top of the bullish trend channel around 119,566 and potentially surpass the psychological level of $120,000.
On the other hand, if bullish strength prevails and Bitcoin breaks above $120,000, it is likely to reach the 7/8 Murray level around 121,875.
Conversely, with a break below 116,700, we could expect Bitcoin to fall to the 200 EMA around 113,500 and the strong support of the 4/8 Murray level around 112,500.
The eagle indicator is reaching overbought levels, so a technical correction for Bitcoin is likely in the coming hours, after which it could resume its bullish cycle.
