Technical outlook:
Bitcoin has rallied through $63300 mark at the time of writing and is facing resistance around $63500-800 zone. It is not displayed on the daily chart but fibonacci 0.618 retracement of the recent drop between $6700 and $56400 has been tested. Bears might remain inclined to be back in control from here, dragging lower towards $50000 level.
Also note that $49000-50000 remains potential bullish reversal zone due to the following convergence: 1. The Fibonacci 0.618 retracement of rally between $40000 and $67000 and 2. The channel support trend line passing through. Bitcoin could resume its uptrend if a bullish turn is produced at the above convergence marked with a rectangle on the daily chart here.
On the flip side, a break below the channel support and subsequently $40000 initial support will confirm a deeper correction lower. Bitcoin could drop up to $28600 mark in the next several weeks confirming a bearish reversal ahead. For now, we remain focussed on $49000-50000 zone, for a potential bullish reversal.
Trading plan:
Potential drop to $50000 against $67000.
Good luck!
