Bitcoin is trading around $66,857, consolidating below the 21-day SMA and within the downtrend channel that has been forming since March 19. According to the H4 chart, Bitcoin is under downward pressure, so we could expect consolidation above $65,000 in the coming days.
If Bitcoin continues its bearish cycle, we could expect a drop toward the lower band of the downtrend channel, around $63,400, and possibly reach $62,500, where the 2/8 Murray level is located.
Conversely, if Bitcoin decisively breaks out of the downtrend channel formed on March 19 and consolidates above the 3/8 Murray level, and in turn consolidates above the 200 EMA, this could be seen as an opportunity to take long positions, with a target at the 4/8 Murray level around $75,000.
If Bitcoin struggles to break above the downtrend channel, we could continue selling Bitcoin below $67,600 with targets at the strong support level around $65,500; this level could provide a zone for a technical bounce.
A decisive break below $65,000 could see Bitcoin reach the 2/8 Murray target around $62,500 or even hit the February 5 low near the psychological $60,000 level.
