FX.co ★ Trading plan for Bitcoin for March 07, 2022

Technical outlook:

Bitcoin has again dropped below the support zone around $38,000-40,000. The crypto currency should stay above the $33,000 interim support to keep the above bullish scenario intact. A turn from here will bring bulls back into play as they will push prices through the $48,000-50,000 mark in the next few trading sessions. A drop below $33,000 will open the door to test the $27,000 support.

Bitcoin is again testing the Fibonacci 0.618 retracement of the upswing between $33,000 and $460,000. There is a high probability of a bullish reversal from here, and a break above $39,500 will confirm the same. Immediate resistance is seen through the $46,000 mark followed by $48,000, while interim support comes around $33,000.

Bitcoin might be still looking to carve a potential Right Shoulder of the proposed Head and Shoulder reversal pattern around the $48,000-50,000 zone. The Head is in place around $69,000, while Left Shoulder is in the $48,000-50,000 zone. Earlier, the Neck line was broken around $40,000 as shown on the daily chart here.

Trading plan:

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

Good luck!