FX.co ★ Trading plan for Bitcoin for July 16, 2021

Technical outlook:

Bitcoin is still seen to be testing yesterday's low around $31,000 levels before resuming its rally. Bulls are expected to remain in control from here but prices need to stay above $28,500 mark going forward. The medium-term structure still remains bullish towards $42,000 levels until prices stay above $28,800 lows.

Bitcoin is seen to be trading around $31,400 levels at this point in writing and might find support ahead of yesterday's lows. Immediate support stays at $28,500 mark, while resistance is seen around $36,000, followed by $42,000 levels respectively. High probability remains for a pullback rally at least towards $42,000-43,000 levels, even if Bitcoin needs to drop through fresh lows.

Only if Bitcoin breaks below $28,500 levels straight from here, bears would remain inclined to push further lower towards $26,000 and $18,000 levels respectively. At this point, traders are advised to hold long positions with risk below $28,500 levels.

Trading plan:

Remain long, stop @ 28,000, target @ 42,000

Good luck!