Technical outlook:
Bitcoin dropped below $20,200 during the New York session on Tuesday alongside other cryptos and risky assets as the US dollar perked up. The above price action has been in line with our earlier discussions and projections as the potential still remains for a further drop through the $19,200-300 zone before BTC could resume its rally higher towards $33,000.
Bitcoin has carved a meaningful larger-degree downswing between $69,000 and $17,500 in the past several months. The corrective zigzag might be complete at around $17,500 and could be the first wave of a much deeper correction ahead. Ideally, prices should retrace the entire drop through $48,000 before resuming the downtrend further.
Bitcoin has also carved a lower-degree upswing between $17,500 and $21,800 in the past few trading sessions. Prices are now retracing the above upswing and the potential remains to drop down to $19,200 before reversing upwards again. Besides, note that $19,200 is the Fibonacci 0.618 retracement of the recent upswing, hence there is a high probability of a bullish reversal.
Trading plan:
Potential rally through $33,000 and higher against $17,500
Good luck!
