Bitcoin is trading around $87,237 below the 2/8 Murray support and testing the support of the downtrend channel formed since early December, which was broken.
After a sharp breakout from this trend channel, Bitcoin managed to rebound to $90,000, but lost momentum and found it difficult to break above the 200 EMA. Therefore, below this level, we are seeing a technical correction.
If Bitcoin falls below $86,000 and consolidates below this zone, it could be seen as a clear signal to sell with a short-term target at the 1/8 Murray around $81,250.
On the contrary, if the price consolidates above the 21 SMA located at $88,383, we could expect it to continue rising until BTC reaches the 200 EMA located at $90,997. The price could even exceed this level and reach the 4/8 Murray around the psychological level of $100,000.
The outlook for Bitcoin is positive as the Eagle indicator is showing a bullish signal, so BTC/USD could recover above $87,500 – 86,500.
