Technical outlook:
Bitcoin has dropped further through the $20,100 mark on Tuesday before finding support. The crypto is seen to be trading close to the $21,200 level at this point of writing and is expected to stage a corrective rally towards the $40,000 mark at least. Please note that short-term support is seen around the $19,500 mark and prices could first drop there before turning bullish again.
Bitcoin faces immediate price resistance around the $32,000 mark, followed by $40,000 and higher, while the interim support is seen around the level of $20,000. A break above the $32,300 mark is now required to ease further selling pressure and confirm that bulls are back in control. Bulls will be poised to hold prices above the $19,500-20,000 zone to keep the near-term structure constructive.
Bitcoin has carved a potential larger degree downswing between the $69,000 and $20,000 levels respectively. Ideally, a corrective rally should materialize from here and push towards $40,000 and up to the $50,000 mark going forward. Please note that there are the 0.382 and 0.618 Fibonacci retracement levels of the above drop and hence potential reversal points.
Trading plan:
Potential rally toward $40,000 and $50,000 against $19,000
Good luck!
