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
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