Technical outlook:
Bitcoin moving perfectly in a contracting triangle consolidation since printing lows at $30,000 levels earlier. Yesterday's early rally towards $39,500 mark was seen as the last leg/wave within the potential bearish consolidation. Bitcoin again reversed lower, falling in-line with expectations and dropped through $36,250 mark today before finding some support.
If the bearish triangle is correct, Bitcoin needs to drop below $30,000 levels to complete the wave structure from $65,000 highs. The crypto is seen to be trading around $36,700 mark at this point in writing and is expected to drop further. Immediate resistance is now seen towards $40,000; followed by $43,000 and higher while support comes in around $28,500 levels respectively.
Traders are advised to take profits on the short positions initiated from $39,500 levels yesterday and wait for an opportunity to go long again. Only a break above $40,000 from here will change the short term bearish outlook.
Trading plan:
Take profits on the short positions taken yesterday.
Wait for prices to reach $30,000 and buy with stop @ 25,000, target is @ open.
Good luck!
