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
Bitcoin dropped close to $46000 mark on Monday before finding support again. The crypto is seen to be trading around $46500 mark at the time of writing as bulls remain inclined to be back in control.
The US dollar index spiked through 96.85 mark on Wednesday on the back of the Federal Reserve interest rate decision.
EURUSD is finding support from its consolidation lower range around 1.1260-70 and could resume its rally from here soon.