FX.co ★ Trading plan for Bitcoin for May 19, 2022

Technical outlook:

Bitcoin dropped through $28,600 in the early Asian session on Thursday. Since then, the crypto has found bids coming in and is now trading close to $29,400 at the time of writing. It is quite possible that a higher low is in place now around $28,600. If the assumption is right, bulls might resume higher from here and a break above $30,800 will confirm it.

Bitcoin has already carved a meaningful larger degree downswing between $69,000 and $25,500, taking out strong support around the $28,600 level. Ideally, a three-wave corrective rally should be underway towards $40,000-42,000 at least in the near term. The potential remains up to the $48,000-50,000 zone going forward.

Bitcoin is facing strong resistance around the $50,000-52,000 zone since the Fibonacci 0.618 retracement of the entire drop is passing through $52,000. A high probability remains for bears to control thereafter. Intraday support is seen through $27,800 as bulls prepare to be back in control if prices manage to drop there.

Trading plan:

Potential rally through $42,000 and $50,000 against $20,000

Good luck!