Bitcoin has carved a potential higher low around $53500 levels early this week. The crypto found support just below $54000 mark, falling in-line with expectations. Further, it has bounced off close to fibonacci 0.382 retracement of the rally between $28600 and $69000 earlier.
The above drop between $69000 and $53500 was part of a lower degree wave IV, which unfolded as an expanded flat. If the structure is correct, the next leg would be higher towards $70000 and further before terminating the fifth of Wave (5) respectively.
Bitcoin can hit a formidable resistance above the $70000 mark and produce a meaningful reversal thereafter. At the time of writing, high probability remains for a rally towards $70000 mark as bulls remain inclined to stay in control.
The wave structure for Bitcoin remains constructive for bulls till support at $40000 is intact. The crypto is carving potential Wave (5) rally since $28600-800 low in June 2021. Looking into the sub waves, the crypto seems to be carving wave v of 5, which could terminate above $70000 mark.
Traders might remain inclined to hold long positions since $54000 mark and also add on dips. Risk remains just below $52000 levels while target potential is above $70000 levels.
The Profinacademy.com Team
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