Technical outlook:
Bitcoin prices dropped sharply below $39,600 on Thursday and printed fresh swing low around the $38,250 mark before finding support. The crypto might be now preparing to rally and produce a corrective pullback towards $52,500 mark. The RSI on the daily chart is trading just below the 30 mark indicating potential oversold zone. Watch out for a sharp pullback rally from here soon.
Bitcoin might be carving a potential Head and Shoulders reversal pattern on the daily chart. The Head is around $69,000, the Left Shoulder coming around $52,500 and the neckline taken out at $40,000 mark respectively. If the above proposed pattern is unfolding, bulls might be back in control soon and push through $52,500 at least, to carve the Right Shoulder.
It would then complete the reversal pattern and Bitcoin should turn lower towards $28,700 and further. On the flip side, if prices continue pushing higher above $52,500 mark, potential remains for a test of $60,000 and above before finding resistance again.
Trading plan:
Potential rally towards $52,500, against $38,000
Good luck!
