Bitcoin prices rallied close to $49,500 mark on Thursday before finding resistance. The crypto has pulled back since then and is now trading around $47,000 mark at the time of writing. The structure continues to remain constructive for bulls until $42,000 interim support remains intact. A push above $50,000 interim resistance, will confirm further upside.
Bitcoin had earlier dropped through $42,000 levels, which was close to the Fibonacci 0.618 retracement of the upswing between $27,600 and $69,000 respectively. Immediate support is seen around $40,000, while resistance comes in around $60,000, followed by $69,000 levels respectively. If bulls manage to hold prices above $42,000 levels, the next leg higher would break above $60,000 initial resistance.
On the flip side, if Bitcoin breaks below $42,000 mark, it could drag further towards $40,000 support. A break of $40,000 would indicate further downside towards $28,600 after a corrective pullback. For now, we remain optimistically bullish towards all-time highs with risk around $40,000 mark.
Trading plan:Potential rally through $75,000 against $40,000
Good luck!