Technical outlook:
Bitcoin continues to drift sideways within its December 2021 range between $45,500 and $52,000 levels. The crypto dropped through its support ($45,700) yet again on Monday and bounced off. It is trading back above $46,300 at this pint in writing and is expected to push through immediate resistance around $48,000 mark. That would open the door for the next interim resistance around $52,000.
Bitcoin has spent the last four weeks within a triangle consolidation. The recent drop could be its final leg before termination and a break above $48,000 from here will confirm. On the flip side, if prices drop below $43,200 and subsequently $40,000 mark, it could test $28,600 support before pulling back higher again. At the moment, bias remains on the bullish outcome.
Bitcoin had earlier dropped through $28,600 mark carving a meaningful support. The subsequent rally between $28,600 and $67,000 also got retraced to fibonacci 0.618 levels around $42,300 as shown on the chart here. High probability remains for a rally to resume higher towards $69,000 and higher from here.
Trading plan:
Potential rally through $70,000 against $40,000
Good luck!
