Bitcoin is drifting sideways again as it tests support just below the $46000 mark. The crypto is seen to be trading around $46300 level at the time of writing as bulls prepare to be back in control. Bottom line remains $40000 mark for bullish scenario to remain intact.
Bitcoin lower degree wave structure since $40000 lows is as follows: The crypto might have carved lower degree wave I and potential ii around $52000 and $47500 levels respectively. If the above proposed structure holds well, prices should stay above $42300 mark as bulls prepare to break above $52000 mark with wave iii in progress.
Bitcoin had earlier dropped through $43200 low before finding support. Also note that the fibonacci 0.618 retracement of the upswing between $28600 and $67000 was seen around $43600-700 zone. Ideally, bulls should remain in control from here on and push prices above the $69000 mark.
The medium term wave structure also suggests that Bitcoin is into its larger degree Wave (5) since $28600 lows. The crypto has managed to carve Waves 1 and 2 around $67000 and $42300 levels respectively. Since then, potential Wave 3 is underway towards $75000 mark at least.
Traders might be willing to hold long positions for now with risk below $40000 mark. Potential target is seen toward $75000 and $125000 respectively in the next few weeks.
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.