Bitcoin slipped through $42500 lows over the weekend before finding support. The crypto has bounced back sharply since then and is back above $51000 handle. If bulls are back in control, prices will stay above $42000 potential support going further.
Bitcoin has bounced from the following convergences: 1. a trend line support drawn across the lows since March 2020. 2. The fibonacci 0.618 retracement of the recent rally between $28600 and $69000 mark. 3. The fibonacci 1.618 extension of the proposed corrective drop.
High probability remains for a bullish trend reversal from here and prices should push through all-time highs soon. Bulls might be inclined to push above $70000 and up to $100000 in the next few weeks. Only a drop below $40000 would raise some concerns about the above bullish scenario.
The wave structure is also suggesting that Bitcoin might be unfolding its larger degree Wave (5) rally since $28600 lows. Further, the crypto might have completed Wave 1 of (5) around $69000 mark and Wave 2 at $42300 on Saturday.
If the above is correct, Bitcoin bulls might be poised to unfold Wave 3 of (5) higher through $70000 easily from here. Traders might be willing to hold long positions against $40000 initial support.
The Profinacademy.com Team
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