Technical outlook:
Bitcoin has rallied as expected and discussed over the last few trading sessions, hitting potential targets close to $41,000/42,000 levels. The rally could still extend towards $42,000 mark but it is advisable to most traders to book profits on the long positions taken earlier and remain flat for a while. It is possible for the counter trend to take more complex shape, going forward.
Bitcoin is seen to be trading around $38,800/900 levels at this point in writing and potentially carving an evening star on the daily chart. If successful, bears will come back in control and drag prices lower towards $33,500/600 at least. Immediate resistance is seen towards $42,000 levels while support comes in around $29,400 respectively.
Traders might remain flat for now after taking profits on long positions earlier and we shall review again around $33,000/34,000 levels to decide the next move. If a complex corrective structure is unfolding, Bitcoin can extend its rally towards $47,000/48,000 levels going forward.
Trading plan:
Book profits on long positions taken earlier and remain flat until $33,000/34,000.
Good luck!
