Bitcoin has dropped close to $60500 mark at the time of writing falling in-line with expectations. The crypto has more room left towards $52000 levels, which is the fibonacci 0.382 retracement of the rally between $28600 and $69000 levels respectively.
Bitcoin’s larger degree wave structure indicates potential five wave rally complete between sub $4000 and $69000 levels respectively. If correct, the crypto is set to produce a meaningful correction below $28600 levels going forward.
Alternatively, it could be unfolding its Wave (5) rally, which had begun from $28600 mark earlier. Potential still remains for a drift lower towards $40000 mark before Bitcoin finds support again. Also note $40000 is lower degree Wave 4 termination as well.
A drop to $42000 remains probable from here, before bulls are back in control to push above $70000 mark. The fibonacci 0.618 retracement of rally between $28600 and $70000 is seen through $43000 levels High probability remains for a bullish bounce if prices drop towards $42000-43000 levels.
Traders might be inclined to hold short positions with risk above $70000 and potential target toward $52000. Only a break below $28600 would change the bullish outlook for Bitcoin as bears would be back in control.
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.