FX.co ★ Trading plan for Bitcoin on January 20, 2022

Technical outlook:

Bitcoin carved a lower high just above the $39,600 lows on Wednesday and seems ready to resume higher again. The crypto is looking poised to take out initial resistance at $48,000 followed by $52,500 in the near term. Bulls need to ensure that prices stay above $39,600 to keep the above bullish scenario intact.

Bitcoin carved a lower degree upswing boundary between $39,600 and $45,000 over the last few trading sessions. The above has been retraced through the $41,100 lows on Wednesday and prices bounced back above the $42,000 handle. High probability remains for a continued rally from here through at least $52,000.

We shall take a review again to decide further action thereafter. Only a consistent break below $39,000 may open the door to further test of the $28,700 lows in the next few weeks. At the moment, bulls are looking poised to stage a sharp rally towards $52,500 before pulling back.

Trading plan:

Potential rally through $52,500 against $38,000

Good luck!