FX.co ★ Trading plan for Bitcoin for February 03, 2022

Technical outlook:

Bitcoin has retraced lower through $36,500 mark early trade on Thursday and is expected to find support. The crypto might be preparing to rally in its next leg higher and print around $52,000-53,000 zone near term. Only a slip below $28,700 from here will change the short term bullish scenario as bears come back in control with potential larger degree trend reversal.

Bitcoin is poised to produce a counter trend rally either from current levels ($36,500-800) of after breaking below $28,700 mark. The potential for counter trend rally remains up to $52,000 mark, which is the Fibonacci 0.618 retracement of the drop between $69,000 and $33,000 respectively (not shown on the chart).

Also note that Bitcoin might be unfolding a bearish Head and Shoulder pattern since $69000 highs. The neckline has been broken at $40,000 mark with Left Shoulder in place around $52,000-53,000 zone. Head is in place at $69,000 and potential Righ Shoulder to be carved around $52,000-53,000 zone going forward.

Tradng plan:

Potential rally through $52,000 against $28,500

Good luck!