Technical outlook:
Bitcoin is off the all-time high print on Tuesday around $68,500 mark. The crypto has since pulled back towards $66,300 mark and is trading close to $67,000 mark at the time of writing. Bitcoin might be preparing to produce a meaningful corrective drop towards $49,000-50,000 zone as discussed earlier. Traders are advised to take profits on long positions initiatiated earlier.
Bitcoin bears are targeting fibonacci 0.618 retracement of the recent upswing between $40,000 and $68,500 level respectively. Also note that its channel support is passing through the $50,000 mark as of now. The above could prove to be a strong convergence point for bulls to be back in control and resume its uptrend.
On the flip side, a break below the channel support and subsequently below $40,000 mark may put Bitcoin under further pressure toward $28,600 support. Until the above happens, bulls are expected to remain in control and push prices higher through $75,000 mark going forward. In the near term, we expect a drop to $50,000 mark.
Trading plan:
Potential drop towards $50,000 against $69,000
Good luck!
