Bitcoin is trading around $77,897 following a sharp downtrend on October 29. Bitcoin is recovering and is now consolidating above the 21-period simple moving average (SMA), so we believe it could continue to rise in the coming hours until it reaches the psychological level of $80,000.
If Bitcoin falls below the 21-period simple moving average (SMA) in the coming hours, this will be considered a negative signal, and we could continue selling with a target below $77,600, and ultimately at the 4/8 Murray level, around $75,000.
Since Bitcoin is in oversold territory, we will technically look for buying opportunities in the coming hours. A pullback to the 61.8% Fibonacci retracement level, around $76,500, could be considered a positive signal to buy.
If Bitcoin consolidates above the 5/8 Murray level, this could act as strong support and be considered a positive buy signal, with targets at the upper band of the downtrend channel, around $80,200; ultimately, we expect it to reach the 200-day EMA and the higher 6/8 Murray level, around $81,500.
A decisive break above $81,000 could change Bitcoin's outlook; hence, we anticipate an upward move toward $85,000. A drop below $75,000 could turn Bitcoin's outlook bearish, so a sharp decline toward the psychological level of $70,000 could be expected.
