Technical outlook:
Bitcoin has printed intraday low around $41,500 mark on Monday after having reversed from $48,500 level over the last week. The drop is in line with expectations and potential remains for extending through $38,200 levels going forward. Bears might be inclined to remain in control until prices stay below $46,000 interim resistance.
Bitcoin had earlier carved a meaningful upswing between $33,000 and $45,800 over the last few trading sessions. Prices almost reached the Fibonacci 0.382 retracement of the entire drop between $69,000 and $33,000 respectively. A pullback was expected, which is materializing since last week high. The next leg higher could reach up to $48,000-52,000 range.
Bitcoin remains a good buy on dips in the near term with the bottom line that $33,000 should hold well. It is quite possible for the corrective drop to reach $38,200 levels, which is the Fibonacci 0.618 retracement of recent upswing, before resuming rally. Traders might be preparing to initiate partial longs from current levels ($42,200) and adding more on dips.
Trading plan:
Potential drop to $38,200 then rally towards $48,000-50,000 against $33,000.
Good luck!
