Technical outlook:
Bitcoin dropped to $29,500 after facing resistance at around $31,600 on Monday. The crypto is unfolding an Engulfing Bearish candlestick pattern on the daily chart, declining further to $28,000. Bulls will have to hold prices above $25,500 to keep the near-term structure constructive.
Bitcoin is still working on a counter trend rally after reaching a low of $25,500 earlier. It might be unfolding as a complex corrective wave structure with the first leg terminating close to $32,500. The second wave might be unfolding and could print marginally below $28,000 before the third leg could resume higher to $42,000 and up to $48,000.
Bitcoin is working on its larger degree downswing between the $69,000 and $25,500 levels seen on the daily chart. It needs to start a similar corrective wave to the Fibonacci 0.618 retracement level seen at around $52,000. Traders are likely to open new long positions if prices test $28,000 from here.
Trading plan:
Potential rally through $42,000, $48,000 and up to $52,000 against $20,000
Good luck!
