Bitcoin is trading around $108,972, below the 21-SMA and below the 4/8 Murray pivot, undergoing a technical correction after reaching a high around $114,000.

Bitcoin attempted to break out of the uptrend channel formed since early October. However, BTC encountered strong resistance at the top of this channel, which in turn coincided with the 200 EMA, a key level that acts as a barrier preventing the price from continuing upward.

Technically, we could expect Bitcoin to fall below $110,000 and could reach the 6/8 Murray pivot around 106,250, and could even reach the psychological level of $100,000.

On the other hand, if Bitcoin sharply breaks the downtrend channel and consolidates above $114,000, we could see this as a signal for a short-term recovery with targets at $125,000.

The eagle indicator is showing a positive signal, so if the price finds support around 106,250, which has acted as a strong support in previous sessions, this could be seen as a buying opportunity.

Besides, if Bitcoin consolidates above 3/8 of the Murray level at 109,375, this could be seen as a buying signal, as we could expect it to reach 112,500 in the short term.