FX.co ★ Trading plan for Bitcoin on October 19, 2021

Technical outlook:

BBitcoin reached the $63,000 mark in the past few trading sessions threatening to break above $65,000. It remains possible for bulls to continue pushing the price higher from here, but traders are advised to take maximum profits in long positions initiated earlier and reduce risks. The crypto remains vulnerable for a corrective drop towards $48,500 before resuming its rally.

Bitcoin is not to sell on rallies but to buy on dips. As seen here, the recent rally took out a formidable resistance around $59,500. Ideally a pullback should be due anytime soon, dragging prices lower towards the $48,500-50,000 zone before finding support. Traders might take profits and wait for a corrective drop to open long positions again.

Bitcoin's overall structure remains bullish until it hits the $40, 000 support. The crypto also carved a new channel support and is drifting higher within the channel. The next support is also seen near $48,500, which could be good to open long positions. The crypto will turn bearish if it breaks the channel and subsequently the level of $40,000.

Trading plan:

Good luck!