Technical outlook:
Bitcoin had pushed through $48,500 mark early in the session before turning lower again. The crypto has slipped below $48,000 mark at the time of writing and has reversed as discussed earlier. Probability remains for a drag lower towards $35,000-37,000 zone if prices stay below $53,000 mark going forward. Traders might want to position themselves accordingly.
Bitcoin has reached the Fibonacci 0.618 retracement of the recent drop between $52,700 and $42,900 levels respectively and a bearish turn can be expected against $52,700 mark. If correct, the next leg could be sharply lower towards $35,000-37,000 zone or even lower. The crypto is trading just below $48,000 mark and is facing immediate resistance at $52,700 level.
A drop below $45,000 will confirm that Bitcoin has carved a meaningful lower top and is heading lower toward $35,000 mark. Only a push above $53,000 will nullify the above bearish structure.
Trading plan:
Potential drop toward $35,000-37,000 against $53,000.
Good luck!
