Bitcoin is trading at about 72,536, pulling back after reaching a new high of around 73,656. It is expected to make a strong technical correction in the next few hours and could reach the psychological level of $70,000.

We believe that Bitcoin which is heavily overbought could continue its rise in the coming days. If it continues to trade within the uptrend channel, it could even reach 4/8 of Murray located at $75,000.

Around $73,500 is a weekly resistance. If BTC trades below this area, its price could reach $71,096, a level where the 21 SMA is located. If this area is tested, BTC could reach the bottom of the uptrend channel around $70,200.

Bitcoin could find a good spot to resume buying around $71,096 or around $70,200. Both levels could be seen as a signal to buy with the target at $75,000.

The outlook for Bitcoin could change if it consolidates below 3/8 Murray in the next few days. Then, the price could reach 2/8 Murray at 62,500 and eventually, the psychological level of $60,000 which coincides with the 200 EMA located at 59,364.

Given that there is a strong injection of money into the market as happened in the past, Bitcoin should return to the $40,000 or $30,000 levels. We believe that as it trades below $75,000 which represents a pivot point, we could expect a depreciation of 50%. In other words, Bitcoin could fall towards $35,000 - 40,000 in the coming weeks.