Bitcoin is trading around $91,537, consolidating in this area and showing signs of exhaustion, which means that a technical correction is likely to occur in the coming days.
Bitcoin has encountered strong resistance around $92,500. If it continues its rise, it is likely to reach Murray’s 3/8. This area represents strong resistance around $93,750.
If Bitcoin undergoes a technical correction, it is likely to hit $89,500 around the 21 SMA or could even reach the bottom of the uptrend channel around $88,400.
The Eagle indicator is showing overbought signals, but Bitcoin could continue its climb. If a pullback to $93,000 and $93,750 occurs, it will be seen as an opportunity to open short positions.
The key to a good technical correction is to wait for the price to reach the top of the uptrend channel around $93,700 or the 3/8 Murray. We must be careful if our strategy is long, as a technical correction is expected.
A good area is to plan long positions. For this, we should wait for the price to reach $89,000, as this level could provide new momentum, which in turn coincides with the bottom of the uptrend channel.
The material has been provided by InstaForex Company – www.instaforex.com