FX.co ★ Trading plan for Bitcoin for October 27, 2021

Technical outlook:

Bitcoin remumes its corrective decline from $67000 highs, as discussed earlier and in-line with expectations. The crypto currency is trading around $58900 mark at the time of writing and should find some support around $56200 mark. As shown on the daily chart, the Fibonacci 0.382 retracement of the recent upswing between $40000 and $67000 is passing through $56200 level.

A break below $56000, will open door to test $53000 and $50000 levels in the next few trading sessions as correction deepens. Please note that strong support is seen around $50000 mark, which is the Fibonacci 0.618 retracement and the channel support zone as well. High probability remains for bulls to be back in control if Bitcin drops to $50000 level.

Aggressive traders might remain short for now as suggested on Tuesday, with tight risk at $67000 high. Strong price support is seen through $40000 level, followed by $28600 on the daily chart. Only a break below $40000 and channel support line will change the trend to bearish and target below $28600.

Trading plan:

Potential drop to $56000 against $67000 level.

Good luck!