Technical outlook:
Bitcoin climbed above $20,800 intraday on Thursday after finding support at around $19,700 on Wednesday. The crypto is seen to be trading just below $20,700 at this point in writing and is expected to drag lower through $19,200 in the near term. Bears will remain poised to hold prices below $21,700 to keep the structure intact.
Bitcoin has already carved a meaningful downswing between $69,000 and $17,500 in the past several weeks. Ideally, prices should retrace the above drop before the next downswing resumes. Potential targets for the counter-trend rally are towards $33,000 and $37,000 respectively. Also, note that initial resistance is seen at around the $32,300 mark, hence, a break there is encouraging for bulls.
Bitcoin is currently working upon its lower degree upswing between $17,500 and $21,700. Prices are producing a corrective drop, which is expected to terminate at around $19,200 in the next few sessions before the rally resumes higher again. Traders might be preparing to initiate fresh long positions at around the $19,200 zone.
Trading plan:
Potential rally through $33,000 against $17,000
Good luck!
