Technical outlook:
Bitcoin dropped through $38,700 levels during Asia Session on Monday. The crypto has tested its recent swing low around $38,500 and has been successful in holding prices higher. Bulls will remain poised to break above $43,000 mark to confirm they are back in control and the next upside target could be $50,000 mark at least.
Bitcoin is still in the middle of a counter trend rally since $33,000 mark. The crypto has completed two waves of the corrective phase around $48,000 and $38,500 levels respectively. If the above structure holds well, bulls will be inclined to resume its final wave rally from current levels and push through $50,000-55,000 zone going forward.
Bitcoin is also facing its fibonacci 0.618 retracement of the earlier downswing between $69,000 and $33,000 levels around $55,000 levels. Probability remains strong for a bearish reversal if prices are able to reach $50,000-55,000 zone going forward. On the flip side, a break below $38,500 will open the door to test $33,000 mark.
Trading plan:
Potential rally through $50,000-55,000 against $33,000
Good luck!
