Technical outlook:
Bitcoin might have completed its corrective rally through $56,500 levels yesterday or it could complete around $58,000 levels soon. Either way, traders might prepare to initiate fresh short positions now, with a potential target below $41,000 levels going forward. The crypto might still have one more leg lower, before resuming its rally towards $65,000 and higher.
Bitcoin is seen to be trading around $54,300 levels at this point in writing and remains vulnerable to further decline towards $43,000 and $41,000 levels respectively. Immediate resistance is at $65,000, while support comes in around $43,000 levels respectively. Also note that fibonacci 0.382 retracement of the entire rally between $3,850 and $65,000 is seen towards $41,000 levels respectively.
Hence probabilities remain high for a potential bullish reversal if prices manage to drop there. The overall uptrend still remains intact but a break below $28,000 would threaten a bearish turn. At least for the short term, Bitcoin remains vulnerable for a corrective drop towards $43,000/41,000 levels before finding support again.
Trading plan:
Remain short, add more @ 58,000, stop @ 65,000, target is @ 43,000.
Good luck!
