Bitcoin is trading around $90,252, rebounding after reaching the bottom of the uptrend channel formed since December 24. According to the H4 chart, we are seeing a strong technical correction after reaching a high of $95,000.
This level, where the price of Bitcoin is now, provides good support as it is located at the 200 EMA and could serve as a good point to open long positions if the price recovers above this area.
A decisive break of the uptrend channel and consolidation below $89,500 could see Bitcoin continue its decline and reach the 2/8 Murray at $87,500, and finally accelerate its fall towards $81,250.
As long as BTC trades within the uptrend channel and consolidates above the psychological level of $90,000, the bullish outlook remains intact. We expect the cryptocurrency to recover and reach the 21 SMA around $92,488, the 3/8 Murray at $93,750, and could eventually reach the top of the uptrend channel around $96,000.
The Eagle indicator is showing a negative signal, so we must be careful if a break below $89,500 occurs, as Bitcoin's decline could continue.Eventually, it could reach $87,000 and $81,000.
