Technical outlook:
Bitcoin rose through $30,100 intraday on Tuesday only to find resistance and pull back sharply thereafter. The crypto has dragged lower towards $29,500 at this point in writing as the consolidation continues. Prices need to clearly break above $31,400 to accelerate further through $40,000 and higher.
Bitcoin might drop towards $27,800 before bouncing back since it is the Fibonacci 0.618 retracement of the recent upswing between $25,500 and $31,400. The crypto is developing its counter-trend rally since the $25,500 lows. The rally is expected to terminate at about $42,000 at least. The potential remains towards $48,000 and $52,000 going forward.
Bitcoin has carved its larger degree downswing between $69,000 and $25,500 levels. The same is being worked upon and the price could be retraced up to the Fibonacci 0.618 level, which is seen at around $52,000. Traders would be preparing to to initiate fresh short positions from around the $48,000-52,000 zone going forward.
Trading plan:
Potential rally through $42,000 and $48,000 against $25,500
Good luck!
