Bitcoin is trading around $69,901, pulling back after encountering strong resistance near the top of the downtrend channel that has been forming since March 16.

Bitcoin consolidated for a few hours above the 200 EMA while trading above $71,000; however, it encountered strong resistance at the downtrend channel, which we believe could force it to continue falling in the coming days until it reaches $66,000.

If, in the coming hours, BTC/USD consolidates below the 21 SMA and below the 200 EMA, and in turn breaks and consolidates below the 3/8 Murray line, this could be seen as a negative signal, and we could expect Bitcoin to reach $65,000 and potentially even the psychological level of $60,000.

A decisive break above the downtrend channel and consolidation above $71,500 could signal a trend reversal, and we could expect Bitcoin to return to the 4/8 Murray levels around $75,000.

The Eagle indicator has reached oversold levels, so it could be a good point to open long positions if the price rebounds above the 3/8 Murray level around $68,750.