Bitcoin is trading around $65,475 within the uptrend channel that has been in progress since early July. Bitcoin is approaching the July 13 high of around $65,600. If Bitcoin encounters resistance around this 1/8 Murray level, we could expect a pullback toward the lower band of the uptrend channel around $64,500.
A pullback toward $64,000 or even toward the 21 SMA could be considered an opportunity to open long positions, and we expect Bitcoin to break through the strong resistance at $65,600, after which it could then quickly reach the 2/8 Murray level around $68,750 and ultimately the psychological level of $70,000.
A decisive break below the uptrend channel formed on the daily chart since July 1 could see the price reach the 0/8 Murray level around $62,500 and eventually plunge to the -1/8 Murray level around $59,375.
The Eagle indicator is reaching overbought levels. However, given that the trend remains bullish, we reckon that if the price reaches the June 15 high around $67,500 and encounters resistance around this area, we might look for opportunities to open short positions.
