Bitcoin is trading within a downtrend channel formed since early February after attempting to break through the psychological level of $70,000 over the weekend. Bitcoin is showing negative signs, so it is likely to continue its decline in the coming days and could reach the 2/8 Murray around $62,500.
A sharp break below the 2/8 Murray and a consolidation below this zone could be a clear signal to sell Bitcoin, with targets at the 1/8 Murray around $56,250.
On the contrary, if Bitcoin consolidates above the 21 SMA located at $67,700, we could expect it to attempt to break the downtrend channel around $69,000. If this occurs, we could expect BTC to continue rising and could reach the 4/8 Murray around $75,000.
If a rejection occurs around the top of the downtrend channel below $69,000, Bitcoin is expected to continue its bearish cycle and could reach $62,000 around the 2/8 Murray in the short term.
