Technical outlook:
Bitcoin might have carved a meaningful top at $61,781 on Sunday and bears seems to be preparing for another round of selloff lower towards $43,000 if not further. Also note that Bitcoin has carved a lower top around $58,000/59,000 as expected and discussed earlier. Bears are expected to remain in control until $61,781 high stays intact. Even if it is breached, the upside remains limited from here.
The crypto is trading around $58,750 mark at this point in writing after hitting a lower high around $60,000 yesterday; and a break below $53,000 will confirm that bears are completely in control again. Immediate resistance stays at $61,781; while intermediate support on the daily chart is seen around $43,000 mark. It is very close to fibonacci 0.382 retracement of the entire rally between $3,850 and $61,781 levels respectively.
The overall structure might be turning bearish at least for a while as bears remain poised to print towards $39,000/40,000 intermediate support zone, going forward. If bullish bounce is seen there, the uptrend is expected to continue and we could see higher highs towards $65,000 at least. Alternately, a drop below $39,000, could open doors for a re-test of $24,000/25,000 zone.
Trading plan:
Remain short with stop @ 62,000, target @ 37,000/39,000
Good luck!
