Bitcoin has been on a sharp decline since consolidating around $74,000. BTC failed to reach the $75,000 pivot point and resumed its downtrend, breaking below the 3/8 Murray line and then below the 2/8 Murray line, reaching the key support level of the downtrend channel around $67,200.
Bitcoin could consolidate above $67,000 in the coming days, which could be seen as an opportunity to buy during a technical bounce. However, this makes sense only if the price consolidates above the lower band of the downtrend channel.
If bearish pressure prevails, Bitcoin is expected to reach the 1/8 Murray level around $65,627, but this support is weak, so Bitcoin could easily reach the psychological level of $60,000.
The Eagle indicator has reached oversold levels, so there is a probability of a technical rebound in the coming hours, provided the BTC price consolidates above $67,000.
If Bitcoin recovers some of its losses and returns to consolidate above the 2/8 Murray level around $68,750, this could be seen as a buying opportunity with targets at the 3/8 Murray level around $71,875; ultimately, we expect it to reach the upper band of the downtrend channel around $74,000.
Given that Bitcoin is under downward pressure, a technical bounce toward the 3/8 Murray line or the 21 SMA could be seen as an opportunity to resume short positions, and we could sell if the price shows signs of exhaustion or accumulation around this area.
Our trading plan for the coming hours is to buy BTC/USD above $67,000 with great caution. We can open long positions, always with a tight stop loss and carefully managing our capital risk.
