Technical outlook:
Bitcoin rallied through $42,200 highs on Wednesday before finding resistance. The crypto has pulled back toward $41,500 levels at this point in writing and is expected to find support close to $40,000 mark before resuming its rally. Bulls are looking poised to hold prices above $38,500 mark and push through $50,000-55,000 mark going forward.
Bitcoin had dropped from $69,000 through $33,000 levels, carving a meaningful downswing. The crypto has been unfolding a counter trend rally since then and is looking to push through $50,000 mark at least to complete the pattern. Also note that $50,000-55,000 zone is close to the Fibonacci 0.618 retracement of the above downswing.
High probability remains for a bearsh turn if prices manage to push through $50,000 mark going forward. At the moment, Bitcoin seems to have carved a lower degree upswing between $38,500 and $42,200 levels. It might retrace the above upswing and correct lower through $40,000 levels in the near term before finding support again.
Trading plan:
Potential rally through $50,000 against $33,000
Good luck!
