Technical outlook:
Bitcoin rallied past $44,000 in the early hours of trade on Friday. The crypto might be facing interim resistance close to the $45,000 handle and drop back to $40,000. If correct, the triangle consolidation would continue for some more time before breaking out. On the flip side, a push through the $46,000 mark will confirm a bullish breakout.
Bitcoin could accelerate higher towards $48,000-50,000 to complete its counter-trend rally. The three-wave counter-trend rally had begun since $33,000 lows and could be into its last leg higher through $48,000-50,000. It is also the Fibonacci 0.618 retracement of the earlier drop between $69,000 and $33,000 respectively.
Bitcoin might be carving a bearish triangle consolidation and a break below $37,000 will be the confirmation. If prices break lower, it could drag further through $34,000 and $27,700 before producing a meaningful pullback. It remains to be seen how prices react through current levels around $44,000-45,000.
Trading plan:
Potential resistance around $45,000. Profits on long positions can be booked.
Good luck!
