Technical outlook:
Bitcoin has dropped through $39,500 mark and found interim support after its previous rally between $39,200 and $41,500 levels respectively. The crypto is seen to be trading close to $40,000 mark at this point in writing and is expected to turn higher towards $50,000 mark as projected earlier. Bulls need to hold prices above $33,000 mark to keep the structure intact.
Bitcoin had earlier bounced off the Fibonacci 0.618 retracement of its upswing between $34,000 and $48,000, which is around the $39,000 mark. If the above structure holds well, bulls will remain in control and push through $50,000-55,000 range going forward. It would complete the counter trend rally, which had begun from $33,000 lows.
Bitcoin is trading with the overall downtrend since $69,000 highs. It has already carved a major downswing between $69,000 and $33,000 levels earlier, which is being retraced. Prices are expected to reach the Fibonacci 0.618 level of the above downswing seen around $55,000 level. Bears will be determined to come back in control thereafter.
Trading plan:
Potential rally through $50,000 against $33,000
Good luck!
