FX.co ★ Trading plan for Bitcoin for May 05, 2021

Technical outlook:

Bitcoin reverses from our defined resistance zone around $58,000-59,000 levels yesterday. The crypto had dropped through $53,000 mark before finding support but managed to produce a bearish Evening Star candlestick pattern on the daily chart. This indicates a potential reversal lower and falls in-line with our projections at $41,000-43,000.

Bitcoin has pulled off from yesterday's lows and is seen to be trading around $55,300 levels as we prepare to publish this article. Bears are expected to remain in control at least until prices stay below the $60,000 mark, going forward. Immediate interim resistance is at $59,000, followed by $65,000 mark, while support is around $47,000, followed by $43,000 levels respectively.

Bitcoin is producing a medium term counter trend drop towards $41,000-43,000 zone, before the rally could resume higher. A drop below $47,000 mark will confirm and accelerate towards $41,000, which is also fibonacci 0.382 retracement of the entire rally between $3,850 and $65,000 levels respectively.

Trading plan:

Remain short, stop @ 65,000, target @ 41,000

Good luck!