Technical outlook:
Bitcoin dropped through the $37,700 level on Tuesday before finding support and bouncing back to the $38,800 mark intraday at the time of writing. The crypto is seen to be trading around the $38,500 mark at this point in writing and is expected to resume higher soon. Also, note that prices have bounced from its channel support trend line.
Bitcoin has tested the Fibonacci 0.618 retracement of the entire rally between the $33,000 and the $48,000 mark as depicted on the daily chart here. Ideally, the next move should be higher towards the $50,000-55,000 range in the next several trading sessions. The bottom line is that prices should stay above the $34,000 mark to keep the structure intact.
Bitcoin has been producing a counter-trend rally since $33,000 lows and could be into its last leg higher towards the $50,000 mark. Also, note that $50,000 is close to the Fibonacci 0.618 retracement of the previous drop between $69,000 and $33,000 levels respectively. The probability remains high for a bullish turn from here.
Trading plan:
Potential rally through $50,000 against $33,000
Good luck!
