Bitcoin is trading around $73,369, rebounding after hitting the lower band of the downtrend channel that has been forming since May 14. Bitcoin is expected to recover some of its losses in the coming hours.
Bitcoin hit a low of $72,520 and is showing signs of exhaustion, so we believe it could consolidate around this area in the coming days and potentially return to the lower band of the downtrend channel at $77,000.
Given that Bitcoin has reached the downtrend channel, we expect this could present a good opportunity to open long positions so that we can buy above $72,800 with targets at $75,000, around the 21 SMA at $75,700, and finally around the 200 EMA at $77,173, which also coincides with the upper band of the downtrend channel.
If downward pressure prevails, BTC has strong support around the 3/8 Murray level at $71,875; this level could offer a technical bounce and could be considered a zone to enter long positions.
The outlook is bullish for BTC, and it is expected to recover above $71,800 in the coming days, so we plan to look for opportunities to buy above this zone with targets at $75,000 and $77,000.
The Eagle indicator has reached oversold levels, and a Bitcoin recovery is expected before it resumes its bearish cycle.
