Technical outlook:

Bitcoin finally dropped through the projected $28,000 mark on Thursday before bouncing back. The crypto remained shy by just 200 points to hit the Fibonacci 0.618 retracement as we were expecting. The wave structure still remains constructive for bulls in the near term as they prepare to push higher through $42,000 at least.

Bitcoin has now completed its second wave within the proposed three-wave corrective rally, which began at the $25,500 lows. If the above structure holds well, prices would stay above $25,500 and unfold its third-wave rally towards $42,000 and the $48,000-50,000 area going forward. The potential remains through $52,000 before reversing lower.

Bitcoin has carved its meaningful downswing between the $69,000 and $25,500 levels earlier. The same retracement is going on now. BTC is expected to test the Fibonacci 0.618 retracement of the entire drop, which is seen close to the $52,500 mark. We expect prices to rally in the short term and then reverse lower again towards $20,000 and beyond.

Trading plan:

Potential rally through $42,000, $48,000 against $20,000

Good luck!