Technical outlook:
Bitcoin has rallied through $44,000 mark as we expected and discussed earlier. The crypto has surprised many bearish traders as prices rose from $36,500 through recent high. It is approaching an intermediate resistance zone between $44,000 and $46,000 levels and could face temporary setbacks here.
Bitcoin is also approaching its fibonacci 0.382 retracement of the recent drop between $69,000 and $33,000 levels, which is seen around $46,700. High probability remains for a bearish reaction and prices could pullback lower in the near term. Traders might book profits between now and $46,700 zone and buy again at lower levels.
Bitcoin is unfolding a potential Head and Shoulder bearish pattern since $69,000 high registered on November 10, 2021. Its Head is marked at $69000, while Left Shoulder comes around $52,000 mark. After breaking below its Neckline around $40,000, EURUSD is pulling back to carve it Right Shoulder around $50,000-52,000 zone.
Trading plan:
Potential profit booking around $44,000-46,000 zone in the near term.
Good luck!
