Technical outlook:
Bitcoin is trading close to the $47,000 mark at the point of writing. It has tested its potential support at around $45,700 on Wednesday. Ideally, bulls should prepare for a strong rally from here to the $60,000 and $69,000 levels in the near term. Prices should stay above $42,300 for the above bullish scenario to remain intact.
Bitcoin had earlier dropped to a low of $42,300, which is Fibonacci 0.618 retracement of the upswing between the $28,800 and $67,000 levels respectively. The crypto might remain well supported around $42,300 going forward and a break above $52,000 now will confirm that bulls are back in control. Only a break below $42,300 will expose critical support around the $40,000 mark.
Furthermore, bitcoin has bounced off the Fibonacci 0.618 retracement of its recent upswing between $45,500 and $52,000 as well. A series of Fibonacci supports should prove to be extremely bullish scenario and a strong rally s expected to materialize soon.
Trading plan:
Potential rally through $75000 against $40000
Good luck!
