Technical outlook:
Bitcoin grew to $31,800 on Tuesday, extending its bullish momentum from Monday. The crypto has broken past interim resistance around the $31,400 mark and the price is expected to accelerate its climb. Any drop should be corrective and the price remains well supported above $28,000. The upside potential remains through $35,000 and $42,000 in the near term.
Bitcoin is well into its third leg within its corrective phase that had begun since the $25,500 lows. The second leg terminated around $28,000 over the last week, just shy of the Fibonacci 0.618 retracement by a few points. Since then, bulls are back in control pushing prices through $42,000 in the next few trading sessions.
Bitcoin is producing a larger degree corrective rally to retrace the similar degree drop between $69,000 and $25,000 as marked on the daily chart here. Immediate resistance is seen at around $40,000, followed by $48,000 and up to $52,000, while interim support is at $28,000 followed by $25,500 respectively. The potential remains for a push through $52,000 going forward.
Trading plan:
Potential rally through $42,000, $48,000 and $52,000 against $20,000
Good luck!
