Technical outlook:
Bitcoin had reached its all-time highs at $58,300 on February 21, 2021. Since then it has reversed sharply lower printing lows around $43,000 levels yesterday before finding some support again. The crypto is seen to be trading around $47,800 levels at this point in writing and this could just be a pullback rally before it could reverse lower again. Please note that potential remains for a drop towards $37000, which is fibonacci 0.382 retracement of the entire rally between $3,850 and $58,300 respectively.
Immediate resistance is fixed at $58300, while intermediary support comes in around the $43,000 levels respectively. The ongoing corrective rally might reach up to $52,000/53,000 levels, before finding resistance again. A bearish reversal can be expected thereafter, dragging prices below $43,000 and towards $37000 at least.
Also note that fibonacci 0.618 retracement of the entire rally between $3,850 and $58,300 is seen towards $24,800 levels as depicted on the daily chart. A deeper correction might be preparing to drop until $24,000/25,000 before Bitcoin resumes its rally again. Further, the trend line support is also seen to be coming around $24,000/25,000 zone, and hence probabilities for a bullish bounce remains.
Trading plan:
Short against $58,300, target @ 37,000
Good luck!
