Technical outlook:
Bitcoin is preparing to rally towards $50,000 mark in the next few trading sessions. The crypto has yet again found support around $37,500 mark on Sunday and prices managed to turn higher above $39,000. Bulls need to keep prices above the $33,000 mark for the above bullish structure to remain intact. A push above $40,000-41,000 will accelerate.
Bitcoin had earlier dropped between $69,000 and $33,000 levels, carving a meaningful downswing. The entire drop needs to be retraced up to $50,000 mark, which is close to the Fibonacci 0.618 level of the above boundary. Since $33,000 lows, bulls are working on a counter trend rally to terminate higher as suggested on the chart.
The corrective phase normally unfolds into three waves within which two waves are looking complete around $46,000 and $34,500 levels respectively. Sine then, the third wave is progressing higher through $50,000 mark that would complete the corrective structure. We can expect the larger degree trend to resume lower thereafter.
Trading plan:
Potential rally through $50,000, against $33,000
Good luck!
