Technical outlook:
Bitcoin turns lower from $58,000-59,000 zone as discussed earlier, in line with projections. The crypto has dropped through $55,000-56,000 levels as of now and might continue lower towards $43,000 at least, as highlighted on the daily chart here. Bottom line is that prices must stay below $65,000 to keep the above short-term bearish structure intact.
Bitcoin is seen to be trading at around $56,000 levels at this point in writing and is expected to drag further lower to complete the Gartley structure. Immediate price resistance stays at $65,000 mark, while support comes in around $43,000, followed by $41,000 levels respectively. A break below $50,500 will confirm a lower top in place around $58,000-59,000 levels and that bears would be poised to accelerate lower.
Bitcoin is just producing a potential counter trend from $65,000 levels. After terminating around $41,000-43,000 zone, the crypto is expected to turn higher again towards $75,000 and above. It remains to be seen how soon the counter trend unfolds and where does it terminate. Also note that fibonacci 0.382 retracement is also passing through $41,500 levels, potential bullish bounce could be seen if prices drop there.
Trading plan:
Remain short, stop @ 65,000, target @ 41,000
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com