Technical outlook:
Bitcoin prints yet another high at $49,000 defying resistance before turning lower. The crypto is seen to be trading around $47,500 levels at this point in writing and is expected to produce a meaningful correction towards $34,000 at least, before resuming higher again. Please note the daily RSI still continues to produce a bearish divergence.
Immediate resistance is seen through $50,000 mark, while support remains fixed at $28900 levels respectively. Bulls have remained in control since $3,850 levels and managed to produce a religious uptrend since then. We still remain optimistic regarding the larger trend, but it is highly probable for Bitcoin to produce a retracement or pullback towards $33,700/34,000 zone before finding a meaningful support.
Opportunities are being offered on both sides and one can position according to the risk appetite. Aggressive trading strategy could be to initiate short with risk around $50,000 while conservative traders might want to wait for a corrective drop before initiating long positions again. Only a break below the trend line support might warn for a potential trend reversal.
Trading plan:
Aggressive: Remain short with stop @ 50,000, target @ 33,500
Conservative: Remain flat for now and look to buy @ 34,000
Good luck!
