FX.co ★ Trading plan for Bitcoin for May 03, 2021

Technical outlook:

Bitcoin has rallied through $58,000/58,500 levels after having dropped to $50,600 on April 25, 2021. The recent rally should not be seen as a beginning of a new trend as it might be just a corrective pullback. We have shown the fibonacci retracements of the drop between $65,000 and $50,600 levels respectively, and Bitcoin has just tested its 0.618 levels around $58,000/59,000.

The crypto is trading around $58,500/600 levels at this point in writing, which might prove to be a strong resistance zone and produce a bearish bounce. The projected targets are towards $41,200 and $31,200 levels respectively in the next few weeks. Immediate resistance is seen around $65,000 mark, while support is at $56,000 respectively.

Bitcoin remains vulnerable for a corrective drop and find support around $37,000-40,000 zone. A bullish bounce there could resume the uptrend and push prices above $65,000 levels, going forward. Over the next few weeks, bears are expected to remain in control.

Trading plan:

Remain short, stop @ 65,000, target @ 41,000 and 37,000

Good luck!