Bitcoin has yet again rallied through all-time highs around $68000 on Monday. The crypto has reached new highs amidst bearish divergence on the daily RSI, not shown here. Potential still remains for a decline towards $52000 and up to $50000 before the rally resumes.
Bitcoin’s larger degree wave structure is indicating that Wave (5) might be close to terminating or is complete. We can see three wave structure since $67000 levels, which means Wave (5) is still progressing.
Having said that, Bitcoin remains vulnerable to a corrective drop through $50000 mark at least. The proposed structure is that of an expanded flat, which could drag toward $52000. Also note that trend line support is passing through the same zone, which is encouraging for bulls.
Further note that $52000 mark is the fibonacci 0.382 retracement of the recent rally between $28600 and $68000 mark respectively. Potential remains high for a bullish reversal if prices drag through $40000-52000 zone, going forward.
Alternatively, a drop below $40000 and subsequent break of trend line support will confirm that upside is complete. Traders might then prepare to sell on rallies against $68000 high. At the moment, it is good to wait for a corrective drop before initiating long positions.
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.