Bitcoin is trading around $77,688, below the 5/8 Murray level and within a downtrend channel that has been forming since early September. Bitcoin could continue to fall in the coming days and reach the 4/8 Murray level around $75,000.
A technical bounce is expected around $77,313. If the instrument consolidates above this zone, it could be seen as an opportunity to open long positions in anticipation of a decisive breakout above the uptrend channel around $78,900, after which BTC could climb to the 6/8 Murray level around $81,250.
A pullback toward the $78,900 zone—where the price coincides with the top of the downtrend channel—could be seen as a signal to sell, in anticipation of the price reaching the 200 EMA around $75,209 in the coming days.
Technically, Bitcoin is in an oversold zone, so we believe it could continue to rise in the coming hours; however, we must remain cautious as the downtrend could resume.
A good idea for opening long positions would be to wait for Bitcoin to reach $75,000, as this zone coincides with the 200 EMA, the lower band of the downtrend channel, and the 4/8 Murray level, which represents solid support.
