FX.co ★ Trading plan for Bitcoin for May 11, 2021

Technical outlook:

Bitcoin tested the resistance level around $59,600 again yesterday before reversing sharply lower. According to Gartley patterns, it might be carving $65,000 high earlier. It is expected to terminate around the $41,000-43,000 zone. Please also note that Fibonacci 0.382 retracement of the entire rally between $38,50 and $65,000 is seen towards the $41,500 mark hence raising probabilities for a bounce.

Bitcoin wave structure is constructive for bears as the corrective drop enters its third phase since $59,600 high. The crypto is seen to be trading around the $54,800 level at this point in time. It is expected to continue drifting lower from here. Immediate price support is seen around $52924, while resistance is at $59,600, followed by $61,000 and higher levels respectively.

A break below $52,924 will accelerate further lower towards $47,000 and further. Please note that the above drop remains corrective and once completed, Bitcoin is likely to resume its uptrend above the $65,000 mark. Traders might position themselves accordingly.

Trading plan:

Remain short, stop @ 65000, target @ 41000-43000

Good luck!