Technical outlook:
Bitcoin had rallied through almost $41,000 levels today, before pulling back. The crypto seems to be still consolidating within a contracting triangle after dropping through $30,000 levels over the last week. Traders might take short term profits on long positions taken earlier around $34,000-35,000 levels early this week. Prices are expected to slip back towards $33,000-34,000 zone, before resuming higher again.
Bitcoin had found support around $30,000 mark earlier, which was also right at the trend line support. Possibility remains for a meaningful low to have carved and bulls remain poised to resume rally soon. Immediate price support is seen around $28,500 levels, while resistance is seen at $59,000 levels respectively. A break above $42,000 handle will also be encouraging to bulls, going forward.
Bitcoin is seen to be trading around $39,600 levels at this point in writing and is expected to drift lower towards $33,000 levels at least. A triangle breakout lower will open doors for a decline towards $28,500 levels, before the trend resumes higher again. We shall review again around $33,000 levels before initiating fresh long positions.
Trading plan:
Book profits on long positions taken earlier. Look to buy again around $33,000 stop @ 28,000, target is open.
Good luck!
