Bitcoin is rising above the 2/8 Murray after a brief pause around $87,500. BTC has gained bullish momentum above this area.
If the bullish force prevails, it could be seen as a signal to open long positions. We believe that it could reach the 200 EMA around $90,453 in the coming days and even reach $93,750.
There is a negative divergence, which should make us very cautious, as the Eagle indicator is reaching overbought levels. So, it is likely that after a strong upward movement or around $89,000-$90,500, we could expect a new technical correction.
Bitcoin is likely to undergo a technical correction from current price levels, as we observe that it is reaching the top of the downtrend channel, which could act as a strong barrier.
On the other hand, if BTC breaks through this resistance zone, it could face the next resistance around $90,453 (200 EMA). The Eagle indicator is showing exhaustion of bullish strength, and it is likely that there could be a technical correction in the coming hours.
The outlook could be bearish for the next few hours as long as the price trades below $89,500. If Bitcoin finds good support around the 2/8 Murray, it will be seen as an opportunity to open long positions on the technical rebound.
