Technical outlook:
Bitcoin has rallied close to $45,000 mark as projected earlier and reversed lower to $43,500 levels. The crypto has found interim resistance just below thee $46,800 mark, which is fibonacci 0.382 retracement of the earlier drop between $69,000 and $33,000 levels respectively. Bulls have been successful in taking out short term resistance around $44,500 mark on the daily chart.
Bitcoin might pullback from here towards $38,200 levels before resuming its rally through $48,000-50,000 zone. Also note that it has produced a shooting star candlestick pattern on the daily chart, indicating a potential turn lower from here. Furthermore, the Fibonacci 0.618 retracement of the recent upswing between $33,000 and $45,000 is seen close to $38,200.
Traders might be preparing to take profits around $43,500-45,000 zone and stay aside for a while allowing prices to ease off through $38,200 mark. Bulls will remain inclined to be back in control from $38,000 mark and rally through $50,000 to carve the Right Shoulder of a potential Head and Shoulder reversal pattern discussed earlier.
Trading plan:
Potential profit booking seen around $45,000. The next rally could resume from $38,300.
Good luck!
