Technical outlook:
Bitcoin dropped through the $29,700 lows during the early Asian session on Tuesday before reversing sharply. The crypto has almost taken out the July 2021 support around the $28,600-29,000 area as seen on the daily chart presented here. Prices are pulling back sharply as bulls manage to push above the $32,200 mark at this point in writing.
Bitcoin's drop might have come as a surprise to traders but the chart is not looking that bearish technically. The crypto has now carved a meaningful downswing between $69,000 and $29,700. Ideally, a pullback or retracement is now expected to push prices through $44,000 and up to $54,000 going forward.
Alternatively, Bitcoin has tested the previous lower degree swing support around $29,700 and bulls would now be inclined to push prices higher towards the $69,000 mark. Either way, the crypto should remain in control of bulls from here on and push through $44,000 and $54,000 at least going forward.
Trading plan:
Potential rally through $44,000 and $54,000 against $28,000
Good luck!
