Technical outlook:
Bitcoin carved a potential low around $33,000 on Monday as prices reversed sharply to $37,500 thereafter. Bulls are now looking poised to remain in control over the near term and push through $52,000 at least. It remains to be seen if the crypto is able to hold above a strong support zone around the $28,700 mark.
Bitcoin seems to be carving a classic Head and Shoulder reversal patter with Head at $69,000, Left Shoulder at $52,000-53,000 and broken Neckline around the $40,000 mark. If the above proposed structure unfolds, the crypto should be on its way to produce a sharp counter trend rally towards the $52,000-53,000 zone in the near term.
On the flip side, it is possible that Bitcoins' uptrend remains intact as the price bounced from the Fibonacci 0.786 retracement of the upswing between $28,700 and $69,000. In that case bulls will be poised to push through fresh all-time highs above the $70,000 mark. Either way, prepare for a rally at least towards $52,000 from here.
Trading plan:
Potential rally through $52,000 against $28,500
Good luck!
