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
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