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
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.