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

Technical outlook:

Bitcoin has dropped through $41,000 levels on Friday, falling in-line with our projections made earlier this week. The crypto should be now ready to resume its rally through $50,000-55,000 zone in the next few weeks. Bulls will be inclined to hold prices above $33,000-34,000 interim support and remain in control over the near term.

Bitcoin has been in a corrective phase since $33,000 lows. A corrective phase usually unfolds into three waves; the first was a rally through sub $46,000 mark while the drop through $34,000 was the second wave. Since then, EURUSD has bee into its last wave and is expected to reach at least the $50,000 mark, before terminating.

Bitcoin should be facing strong resistance through $50,000-55,000 zone since it is the Fibonacci 0.618 retracement of the earlier drop between $69,000 and $33,000 respectively. It is also the potential Right Shoulder of the proposed Head and Shoulder reversal pattern with $69,000 as the Head and $50,000 as the Left Shoulder. Expect a short term rally from here.

Trading plan:

Potential rally through $50,000 against $33,000.

Good luck!