Technical outlook:
Bitcoin dropped through $45,500 lows on Friday before finding support again. The crypto is trading close to $46,000 at the time of writing and could be preparing to resume its rally. Till prices remain above $42,000 mark, potential remains for a push towards all-time highs in the next several weeks. Bulls are poised to be back in control from here.
Bitcoin had earlier dropped to the Fibonacci 0.618 retracement of its upswing between $28,600 and $69,000 levels. The $42,000 mark has turned potential support and prices should ideally stay higher if the uptrend is to continue. Furthermore, the rally between $42,300 and $52,000 is also being retraced through the Fibonacci 0.618 levels around $45,500.
If the structure holds well, Bitcoin might be preparing to finally push through $52,000 mark. A break there would open the door toward $60,000 interim resistance and further. Only a consistent break below $42,000 from here, would be considered as bearish and eventually drop through $28,600 mark.
Trading plan:
Potential rally through $70,000 against $40,000
Good luck!
