Trading plan for Bitcoin for January 31, 2022

Technical outlook:

Bitcoin seems to have carved an intermediary bottom close to $33,000 levels over the last week. The crypto might be preparing to produce a counter trend rally toward $52,000 levels before resuming lower again. Prices should stay above $28,700 support to keep the above bullish scenario intact. Prepare for a counter trend rally soon.

Bitcoin faces initial price resistance around $44,000, followed by $52,000 and higher, while support is at $28,700 level respectively. If prices slip toward $28,700 from here, it would signal a trend reversal and excellent case to be sold on rallies thereafter. Until that happens, room remains for bulls to come back in control and push through $52,000 mark.

Bitcoin might be unfolding a classic Head and Shoulder reversal pattern as depicted on the daily chart here. The crypto might have its Head in place at $69,000, Left Shoulder around $52,000-53,000 and Neckline around $40,000 levels respectively. If the above is correct, a potential Right Shoulder should be carved around $52,000-53,000 zone before turning lower again.

Trading plan:

Potential rally through $52,000 against $28,500

Good luck!