Technical outlook:
Bitcoin has dropped through $58,500-59,000 zone as discussed and in-line with expectations. The crypto is seen to be trading around $59,000-400 at this point in time and might prepare to rise higher again. Traders might be advised to book profits on short positions initiated earlier from $65,000 mark and prepare to turn long. Potential remains for a rally towards $75,000 going forward.
On the flip side, Bitcoin can drop further to $56,000 mark, which is fibonacci 0.382 retracement of the rally between $40,000 and $69,000 respectively. A drop below $56,000 will open the door to test $50,000 potential support before resuming its rally towards $75,000 mark. Immediate price support on the daily chart is at $40,000, while resistance is around $69,000 respectively.
Bitcoin wave structure continues to remain bullish until prices stay above $40,000 mark. A break below $40,000 will test further lower towards $29,600 mark. At this point in time, focus shifts tor a rally above $75,000 mark with risk below $56,000 respectively. Bulls seem to be poised to dominate the market soon.
Trading plan:
Potential rally towards $75,000 against $55,000
Good luck!
