FX.co ★ Trading plan for Bitcoin on January 24, 2022

Technical outlook:

Bitcoin dropped to fresh intraday lows below $34,000 at the time of writing. The crypto might have changed the trend since prices dropped below fibonacci 0.786 of the recent upswing between $28,700 and $69,000. The current price will not be optimum to initiate short positions since a sharp pullback could be underway soon.

Bitcoin actions are showing a bullish divergence with the price dropping to fresh session lows while RSI is above the previous lows on shorter time frames. It could be an indication of a potential bullish reversal in the near term. It would be considered a signal to sell on rallies through the $52,000-53,000 zone going forward.

Bitcoin might be carving a larger Head and Shoulder reversal as depicted on the daily chart. The crypto broke the neck line around the $40,000 support, while Head and Left Shoulder remained at $69,000 and $53,000. It is possible that a potential right shoulder couldbe carved around $53,000 soon.

Trading plan:

Potential rally is through $52,000 against $28,000 in the near term.

Good luck!