Bitcoin is trading around $60500 levels at the time of writing as bears prepare to drag lower toward $52000-500 mark. Also note that $52000 is the fibonacci 0.382 retracement of larger Wave (5) between $28600 and $67000 levels respectively.
Bitcoin’s larger degree wave structure is indicating a potential five wave rally complete between $4000 and $67000 respectively. The counts are marked as Waves (1) through (5) on the daily chart here. If the above is correct, a similar degree corrective wave should be underway soon.
Alternatively, Wave (5) is still unfolding and Wave 1 of (5) has terminated around $67000 levels. Either way, a corrective decline should be underway with potential drop to $43000 mark. Also note that $43000 is fibonacci 0.618 retracement of the rally between $28600 and $67000.
Furthermore, the trend line support from sub $4000 level is also passing through $43000-44000 mark. Probability remains high for a bullish turn if prices reach there, and resume its up-trend. Only a break below trend line support and subsequently $28600 will change the trend.
Traders might be preparing to initiate fresh short positions now ($60000-61000), with risk above $67000 and potential target toward $52000 and $43000 levels respectively.
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.