Trading plan for Bitcoin for May 12, 2021

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Technical outlook:

Bitcoin dropped to the $53,000 level yesterday before pulling back again. This was in line with our expectations. The crypto has again hit intraday resistance around the $58,000 level. A bearish reversal from here looks possible. Iy may decline to the $41,000-43,000 levels before Bitcoin resumes an upward movement again.

Bitcoin is seen to be trading around the $57,200/300 levels at this point in writing. It is expected to decrease to at least $43,000 soon. Immediate resistance is seen at $60,000, followed by $65,000; while support comes in around the $47,000 level respectively. A break below $47,000 will be seen as confirmation of a push further lower to the $43,000 and $410,00 levels respectively.

The Fibonacci 0.382 retracement of the previous rally between $3,850 and $65,000 is seen passing through the $41,000 mark. Hence, probability remains high for a bullish bounce if prices reach there.

Trading plan:

Remain short, stop @ 65000, target @ 41000

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com

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