Technical outlook:
Bitcoin bounced off around $42,500 over the weekend. The crypto might have found support around the 18 months trend line support as seen on the daily chart. It rallied through the $52,000 highs on Tuesday and faced mild resistance there before pulling back towards $49,000. Bulls would remain inclined to be back in control ahead of the $42,500 lows in the near term.
Bitcoin retraced its recent upswing between $28,600 and $69,000. The Fibonacci 0.618 mark around $44,000 provided the necessary support and bounce as depicted on the daily chart. High probability remains for a bullish turn from here and push higher towards $70,000 at least. A push above $52,000 will be now required to accelerate further according to the price action.
On the flip side, if the price drops below $42,000, Bitcoin would drop further through the $40,000 initial support as marked on the chart here. A break below $40,000 would suggest a further decline towards $28,600. For now, the structure remains bullish against $40,000.
Trading plan:
Potential rally through $70,000 against $40,000.
Good luck!
