Technical outlook:
Bitcoin further surpassed $21,800 over the weekend before easing off. The crypto is seen to be trading close to $21,400 at this point in writing and is expected to drag the price lower towards $19,200-300 in the next few trading sessions. Bears might be inclined to hold prices below $21,900 to keep pressure on the downside in the near term.
Bitcoin has potentially carved a meaningful downswing between $69,000 and $17,500. A remote possibility remains for yet another low toward the $12,000-14000 area before the rally resumes but the downside remains limited below $17,500. Ideally, the above downswing should be retraced up to the $48,000 mark, which is the Fibonacci 0.618 retracement of the entire drop.
Bitcoin seems to have produced a lower degree upswing between $17,500 and $21,850 in the past few trading sessions. Prices are now expected to retrace lower toward $19,200 before the rally could resume. Also, note that $19,200 is close to the Fibonacci 0.618 retracement of the upswing, which is potential support. Hence, the probability for a bullish turn remains high.
Trading plan:
Potential rally through $32,000 and up to $35,000 against $15,000
Good luck!
