Technical outlook:
Bitcoin has been drifting sideways within a triangle pattern since printing highs around the $31,000-400 range last week. The crypto had dropped through $29,400 intraday on Thursday before finding some bids again. It is quite possible that the triangle consolidation is now complete as bulls are poised to push towards $32,500 in the near term.
Bitcoin has been dropping since the $69,000 highs and might have carved a meaningful bottom close to $25,500 recently. In the process, bears have been successful in taking out one-year-old support at around $28,600 and holding the upper hand since then. Ideally, the entire drop should be now retraced before the next leg lower resumes.
Bitcoin bulls seem to have started the counter-trend rally from the $25,500 low and a push through $32,500 will confirm it (this level is resistance on a lower timeframe). The projected targets of the corrective phase to terminate are $42,000 and $48,000-50,000 going forward. Also, note that $52,500 is the Fibonacci 0.618 retracement of the entire bearish drop and hence, a potential turning point.
Trading plan:
Potential rally through $42,000 and $48,000 against $25,000, then lower.
Good luck!
