Technical outlook:
Bitcoin rose to $20,500 intraday on Thursday before stalling its climb as it reached the upper boundary of its consolidation. The crypto is trading close to $20,450 at this point in writing and it could slip further towards $19,400 in the near term. The short- and medium-term structures will remain constructive for bulls until prices stay above $18,700.
Bitcoin has carved a meaningful downswing between $69,000 and $17,500 since November 2021. The drop has unfolded into a three-wave zigzag (5-3-5), and hence is considered corrective. Ideally, a three-wave structure is completely retraced. Therefore, we expect bulls to be back in control soon and produce a rally towards the $33,000-37,000 area at least. Potential short-term targets are defined at $24,400 and $28,500.
Bitcoin has carved a potential intermediate bottom at around $17,500 or it is close to carving one more. Either way, bulls will be poised to enter the market soon and push the price through $28,500, closer to the initial resistance seen towards $32,375 as marked on the daily chart. Also, note that the medium target potential remains towards $48,200, the Fibonacci 0.618 retracement of the downswing.
Going forward:
Bitcoin's bigger picture could be much lower below $17,500, by the time a three-wave corrective wave completes at a larger degree. In the near term, the crypto is expected to settle above $17,500 and complete its corrective rally towards $28,500 and up to $48,200. Once complete, bears will be back in control to drag prices lower below $17,500.
Trading plan:
Potential rally through $28,500 against $17,500
Good luck!
