Technical outlook:
Bitcoin has drifted lower towards $31,600 levels today but still remains constructive for bulls to come back strong and stage a rally towards $43,000 in the near term. Bottom line remains that prices should stay above $28,500 lows for bullish structure to hold. A break above $34,100 will confirm that a meaningful bottom is in place already and that bulls are back in control.
Bitcoin is seen to be trading around $31,800/900 levels at this point in writing and is expected to find support ahead of $30,500 lows registered earlier. The corrective drop from $36,000 levels is taking a bit complex structure to unfold, before the uptrend could resume. Immediate support is seen at $28,500, while resistance comes in around $42,600 levels respectively.
On the flip side, if prices break below $28,500 levels, bears would be poised to push further towards $16,000 levels in the next few weeks time. It would be interesting to see how prices react around $30,500 levels in the near term.
Trading plan:
Remain long for now stop @ 28,000, target @ 42,000.
Good luck!
