Technical outlook:
Bitcoin has rallied through $31,500 after dropping to the $25,500 lows over the last week. The crypto has bounced off the lows as expected and the possibility remains for an interim low in place already. Bulls will be poised to hold prices above the $25,500 mark and continue pushing higher through the $48,000-50,000 mark going forward.
Bitcoin has taken out strong support at $28,600 (July 2021), over the past week. Ideally, a meaningful pullback rally is due now before the next downswing could resume. The crypto has carved a meaningful downswing between $69,000 and $25,500, which is expected to be retraced through $48,000 at least.
Also, note that the Fibonacci 0.618 retracement of the above downswing is seen passing through $52,000. A high probability remains for the counter-trend rally to reach and terminate the above mark. Bears would be poised to come back in control thereafter, dragging prices lower through $20,000 and beyond.
Trading plan:
Potential counter-trend rally towards $48,000-50,000 against $20,000
Good luck!
