Technical outlook:
Bitcoin has dropped sharply from the $32,400 highs carved early this week. We had projected yet another high at around the $34,000-35,000 zone before the correction but the price reversed early to $29,300 on Wednesday.Bulls are poised to hold prices above the $28,000 mark and continue pushing higher towards $42,000 and $48,000 going forward.
Bitcoin has been producing a counter-trend rally to retrace following its larger degree downswing between $69,000 and $25,500. The corrective phase is expected to terminate up in the $48,000-52,000 zone, which is close to the Fibonacci 0.618 retracement of the above downswing. Bears will be inclined to come back in control thereafter.
Bitcoin is probably unfolding its last leg higher towards $48,000. Furthermore, it seems to have carved a lower degree upswing between $28,000 and $32,400, from which it is retracing at the moment. If the structure holds well, prices will stay above $28,000 and continue its rally. Alteratively, prices might drop to $27,500 before resuming higher again.
Trading plan:
Potential rally through $48,000 at least against $20,000
Good luck!
