Technical outlook:
Bitcoin initially rallied towards the $20,000-100 area, then reversed towards $18,900 before again bouncing back in the early New York session on Wednesday. The crypto whipsawed taking traders by surprise on both sides and is now trading close to $19,600 at this point in writing. Bulls are looking to come back in control and push prices towards $29,000 in the next few weeks.
Bitcoin has been dropping since November 2021 after hitting all-time highs at around $69,000. It has dropped in three waves until now and possibly terminated the fall at around $17,500 in June 2022. Since then, a larger-degree corrective wave seems to be unfolding with the minimum target towards the $29,000-33,000 zone in the next few weeks.
Bitcoin is facing intraday resistance at around $20,000-100 and bulls might be targeting to take that out. Once broken, it would confirm a potential low carved at around $18,900 and that bulls will be successful in holding prices higher. Also, note that prices are bouncing off the Fibonacci 0.618 retracement of the recent rally between $17,500 and $22,400.
Going forward:
Bitcoin has dropped through $17,500, subdividing the down move into three waves from $69,000 highs. Ideally, the crypto is expected to produce a corrective rally towards $29,000 before turning lower or up to $48,000 before bears are back in control. Either way, prices are expected to rally from the current levels provided that $17,500 holds well.
Trading plan:
Potential rally towards $29,000 against $17,500
Good luck!
