Bitcoin is trading around 30,887 after reaching the support of the uptrend channel formed on May 11. BTC is above the 21 SMA which adds a positive outlook. It is likely that it could reach the top of the downtrend channel around 32,300 in the coming days.
On the daily chart, BTC formed a downtrend channel on March 24. We have seen three unsuccessful attempts to break this channel, pushing Bitcoin lower. In the event it fails to break the top of the bearish channel, we could see a new bearish sequence which could reach the support 0/8 Murray around 25,000.
In case bitcoin breaks the downtrend, channel and consolidates above 32,300, there could be an acceleration to the 3/8 Murray at 34,375. It could even reach the 200 EMA located at 39,492.
The downtrend channel represents a strong barrier. A break above this channel could change the outlook in the short to medium term. We could expect bitcoin to rally towards the psychological level of 40,000.
Conversely, a break of the support level of 29,500 will signal a resumption of the downtrend and will invalidate the short-term bullish outlook. If so, BTC may decline to 25,333, the low of May 12.
Our trading plan for the next few hours is to buy BTC above 29,700 with targets at 31,500 and 32,300. A sharp break above 32,300 will be a signal to continue buying, with targets at 34,350 and 39,492. The eagle indicator is showing a positive signal which supports our bullish strategy.
Trading analysis offered by RobotFX and Flex EA.
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