Early in the American session, Bitcoin (BTC/USD) is trading around $68,864, below the 21 SMA, and within the downtrend channel forming since May 20 showing exhaustion of the bullish force.

If Bitcoin falls below 69,000, we could expect a further bearish movement and the price could reach the 200 EMA located at 65,918 and even the bottom of the downtrend channel around 65,200.

A sharp break of the downtrend channel and a consolidation above 70,500 could change the outlook. So, we could expect a recovery in BTC so that it could reach the high of $71,900 and even surpass the one-week resistance of $73,025.

Technically, BTC is still trading lower because Bitcoin has tried to break the top of the downtrend channel twice. However, we are now seeing signs of exhaustion and it will likely continue to fall in the coming days.

A drop below and consolidation below the 200 EMA located around $66,000 could be seen as a negative outlook for Bitcoin. Below this area, it could continue its fall in the coming days until reaching the psychological level of $60,000.