Bitcoin reached highs above $111,850 near the +2/8 Murray area, which represents an extreme overbought zone.

Bitcoin could suffer a sharp decline in the coming days and reach the bottom of the uptrend channel around 106,250 and could even reach the 200 EMA around the psychological level of $100,000.

Technically, Bitcoin is approaching extreme price levels, so a sharp correction is likely in the coming days. Technically, we are seeing an exhaustion of bullish strength, and practically, this could be seen as an opportunity to sell below $112,500.

Eventually, if Bitcoin breaks above 112,500 and fails to consolidate above this zone, it will be seen as a signal to sell, as technically, Bitcoin could undergo a sharp downward acceleration, and we believe it could reach $100,000 in the short term.

Our trading plan for the next few hours is to sell below $112,500 or around $111.850, with targets at 108,500, 107,099, and finally around +1/8 Murray at 106,250.