Technical outlook:
Bitcoin might have carved a meaningful top around $58,300 levels on February 21, 2021. The crypto had dropped over 20% since then to $44,500 mark, before pulling back higher again. It is seen to be trading around $49,850 levels at this point in writing and is expected to continue lower towards $37,700 levels over the next few trading sessions.
Immediate resistance according to daily chart is seen around $59,000 levels, while intermediary support is at $44,500 respectively. Bitcoin might pullback at least towards $52,000/500 mark before resuming lower again. Potential remains for a drop towards $37,500/700 levels, which is fibonacci 0.382 retracement of the entire rally between $3,850 and $58,300 levels respectively.
Also note that a much deeper correction could be underway since $58,300 highs but it could be too early to predict at this point. A break below $22,500, where one year trend line support is seen would be considered as extremely bearish and Bitcoin can drop even further. Over the short term though a minimum retracement towards $37,700 can be expected.
Trading plan:
Remain short against $60,000, target $37,700 at least.
Good luck!
