Technical outlook:
Bitcoin had rallied through 10400/500 levels earlier, almost taking out initial resistance at 10500 as shown on the daily chart here. Since then the crypto has been drifting sideways and it is seen to be trading around 9160 levels at this point in writing. The recent boundary which is being worked upon is between 3850 and 10500 respectively. Immediate resistance is seen around 10500, while strong support remains around 3850 level respectively. Ideally, Bitcoin should produce a counter trend drop towards 6300 levels, which is very close to Fibonacci 0.618 retracement of the previous rally. A bullish reaction could be expected around 6300/6400 levels and Bitcoin could resume its rally towards 13800. It is recommended to open short deals with risk at 10500 level and then turn bullish again at lower levels.
Trading plan:
Remain short, Stop @ 10500, target @ 6300/6400. Then turn bullish again.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com