Bitcoin seems to have carved an intermediate bottom around the $25,500 mark on Thursday. The crypto has reversed sharply since then as expected and has raised through the $30,900 high intraday. It is also carving a significant Morning Star candlestick pattern on the daily chart indicating a continued rally going forward.
Bitcoin is seen to be trading close to $30,500 at this point in writing and is expected to push through the $40,000 mark in the next several trading sessions. Please note that $40,000 is initial price resistance followed by $48,200; while interim support is now seen around the $25,500 level respectively.
Bitcoin has now carved a meaningful downswing between the $69,000 and $25,500 levels. Ideally, the crypto should retrace the entire drop at least towards the Fibonacci 0.618 level, which is seen through $52,400 as marked on the chart here. Traders would remain poised to initiate fresh long positions from current levels.
Potential rally towards $42,000 and $52,000 against $20,000
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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