FX.co ★ Trading plan for Bitcoin for July 20, 2021

Technical outlook:

Bitcoin has dropped beyond expectations as it prints $29,500 lows today. The wave structure remains constructive for bulls until prices hold above $28,600 mark, going forward. Bulls might be preparing to come back strong if $28,600 interim low holds well. A counter-trend rally could materialize soon towards $42,000 at least before resuming lower again.

Bitcoin is seen to be trading close to day's lows around $29,600 mark at this point in writing and is expected to find a bottom soon provided prices stays above $28,600 lows. Immediate support is seen around $28,600 mark, while resistance is around $36,000, followed by $42,000 levels respectively. A break above $32,500 would confirm that a meaningful bottom is in place.

Bitcoin has already carved meaningful bearish borders between $65,000 and $28,600 levels earlier. The crypto is expected to produce a corrective rally towards fibonacci 0.382 levels at least, which is seen around $42,000 mark. Bears might come back strong there after and push prices below $28,800 mark.

Trading plan:

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

Good luck!