FX.co ★ Trading plan for Bitcoin on May 30, 2022

Technical outlook:

Bitcoin rallied through the $30,800 highs during the European session on Monday. The crypto had dropped through the $28,000 lows over the last week and bounced off sharply as bulls are taking control back. Also, note that prices have bounced off the Fibonacci 0.618 retracement of the upswing between $25,500 and $31,400.

Bitcoin is now progressing into its third leg higher towards $42,000, $48,000 and up to $52,000 as the counter-trend rally is gathering pace. Immediate resistance is seen at around $40000, followed by $48,200; while interim support is around $28,000, followed by $25,500 respectively. A push above $31,400 is expected to accelerate.

Bitcoin has carved a meaningful larger degree downswing between $69,000 and $25,500 as seen on the daily chart. Bulls are working upon the above boundary by producing a counter-trend rally towards $42,000 at least. The potential remains to reach up to $52,000, which is the Fibonacci 0.618 retracement of the drop.

Trading plan:

Potential rally through $42,000, $48,000 against $20,000

Good luck!