FX.co ★ Trading plan for Bitcoin for February 16, 2022

Technical outlook:

Bitcoin has raised through the $44,500 level after having tested $41,500 lows over the weekend. The crypto might find some resistance here and turn lower towards $38,000 soon. Probability remains for a test of $46,000 levels before turning lower. Bears might be inclined to remain in control until prices stay consistently below $46,000 mark.

Bitcoin has already carved a meaningful lower degree upswing between $33,000 and sub $46,000 levels in the recent past. Orices have also tested interim resistance just below $46,000, the Fibonacci 0.382 retracement of the drop between $69,000 and $33,000 levels. Potential remains for a drop from here toward $38,000 before the rally could resume.

Also note that Bitcoin prices are producing a Gartley structure from below $46,000 levels. If correct, prices should drop to fibonacci 0.618 support of the rally between $33,000 and sub $46,000 levels, which is seen around $38,200 mark. Ideally bulls should be able to hold prices above $33,000 mark and continue pushing higher through $50,000 mark going forward.

Trading plan:

Potential drop to $38,000 mark first, then rally toward $50,000 against $33,000

Good luck!