Technical outlook:
Bitcoin remained in a range between $43,500 and $44,500 on Wednesday producing an indecision candlestick pattern on the daily chart (Doji). The pattern might be indicating a potential bearish reveral in the near term towards $38,000-500 mark. Bears might be inclined to produce an Evening Star candlestick pattern here keeping prices below $46,000.
Bitcoin has already produced a short term upswing between $33,000 and $46,000 since January 28, 2022. The crypto needs to retrace the above boundary before resuming its rally towards $50,000 mark as projected. A Gartley structure is underway now and high probability remains for a drop through $38,000-500 mark before turning bullish.
Furthermore, please note that $38,000 is close to the Fibonacci 0.618 retracement of the above rally between $33,000 and $46,000 levels. Bitcoin prices should be well supported if prices drop through $38,000-500. The above structure remains bullish until prices stay above $33,000 swing lows going forward.
Trading plan:
Potential drop to $38,000, then rally through $50,000 aginst $33,000
Good luck!
