Technical outlook:
Bitcoin had rallied through all-time highs over the weekend around $58,300 mark before reversing sharply lower. The crypto is seen to be trading almost 20% lower around $48,870 mark at this point in writing and is expected to continue printing lower lows and lower highs. A potential top seems to be in place at $58,300 mark and a meaningful correction should be underway towards $37,000/38,000 at least.
Immediate resistance is seen at $58,300 levels, while support comes in around $29,000 levels, the previous bottom as depicted on the daily chart here. Please note that fibonacci 0.382 retracement of the entire rally between $3,850 and $58,300 is seen around $37,900 mark and Bitcoin might find interim support in that zone. The overall uptrend might still remain intact but a meaningful correction cannot be ruled out.
Looking at the wave structure since $3,850 lows registered in March 2020, Bitcoin might have completed a religious bull run and terminated around $58,300 mark. Probability remains for a drop until fibonacci 0.618 retracement seen towards $25,000 mark, before finding support again. Also note that trend line support is also seen around the same zone and it could provide enough bounce. Only a break below the trend line would indicate that Bitcoin is heading towards a major reversal.
Trading plan:
Remain short, stop @ $60,000, target @ 37,000
Good luck!
