Technical outlook:
Bitcoin slipped through $23,600 lows on Monday, breaking below the interim support around the $25,500 mark. The crypto dropped sharply over the weekend and might test the $20,000 mark before finding support again. Bears seem to be in control for now and it is better to stay aside until the price movement gets clearer.
Bitcoin is now facing resistance around $32,375, followed by $40,000 and higher; while interim support is seen at $20,000. The drop from $48,000 might be complete or near to completion close to the $23,000 mark. If accurate, bulls will be poised to come back in control and produce a sharp rally towards the $50,000 mark going forward.
Bitcoin has dropped along with a bullish divergence on the daily RSI as presented here. This could be seen as a potential trend reversal as bulls prepare to come back strong. If the structure unfolds accordingly, the price would sharply rally towards $32,375 resistance, confirming a trend reversal.
Trading plan:
Preparing for a bullish turn towards $50,000
Good luck!
