Technical outlook:
Bitcoin has extended its drop beyond $53,000, which we expected earlier. Nonetheless, the crypto has bounced from around $41,000-42,000 levels over the weekend. Please note that it is close to the Fibonacci 0.618 retracement of its recent upswing between $40,000 and $69,000 levels. A bullish turn would still keep the structure intact, going forward.
Bitcoin has broken below its channel line support but found support around the Fibonacci retracement. Bulls might be looking poised to come back in control from here ($45,000-46,000) zone. If successful, Bitcoin would be on its way toward all-time highs above $70,000 mark in the next few weeks. A break above $60,000 from here will confirm the same.
Bitcoin faces initial resistance at $60,000 mark, while support comes in around $40,000 mark respectively. A slip to $40,000 will negate the bullish scenario as bears will be inclined to drag further towards $28,000 mark.
Trading plan:
Potential rally toward $70,000 against $40,000.
Good luck!
