FX.co ★ Trading plan for Bitcoin for February 04, 2022

Technical outlook:

Bitcoin carved a potential higher low around $36,200 levels on Thursday and is now looking ready to resume higher through $48,000-50,000 levels at least. The crypto has retraced up to fibonacci 0.618 level of the recent upswing between $33,000 and $39,000 levels (not shown here). Bulls should be inclined to hold prices above the $33,000 mark going forward.

Bitcoin had earlier dropped from $69,000 mark through $33,000 carving a meaningful downswing. The entire boundary should be retraced in the near term before ears are back in control and drag prices well below the $33,000 mark. It is seen to be trading around $37,000 levels at the time of writing and a push above $39,000 will accelerate further.

Also note that Bitcin might be underway to carve the Right Shoulder of a bearish Head and Shoulder pattern unfolding since $69,000 highs. The Head and Left Shoulder are in place around $69,000 and $52,000 levels while Neck line has been broken at $40,000 as marked on the chart here. If the above holds well, prices should rally towards $50,000-52,000 to carve a Right Shoulder soon.

Trading plan:

Potential rally toward $52,000 mark against $28,500

Good luck!