Technical outlook:
Bitcoin dropped through sub $36,000 levels on Tuesday before finding support. The crypto has pulled back sharply and is trading around $38,000 mark at this point in writing. It has finally produced an Engulfing Bullish reversal candlestick pattern on the daily chart indicating a turn higher. Bulls will be now inclined to push through $48,000-50,000 mark going forward.
Bitcoin needs to stay above the $33,000 mark to keep the above short term ullish structure intact. Also note that prices have managed to bounce just below the Fibonacci 0.618 retracement of its recent upswing between $33,000 and sub $46,000 levels respectively. High probability remains for a bulls to be back in control from here.
Bitcoin is within a counter trend rally since $33,000 lows. It is expected to resume the third wave of the correction and push through $48,000-50,000 mark at least. Potential remains for a push through $55,000 level, which is the Fibonacci 0.618 retracement of the entire drop between $69,000 and $33,000 levels respectively.
Trading plan:
Potential rally through $50,000 against $33,000
Good luck!
