Trading plan for Bitcoin for May 14, 2021

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Technical outlook:

Bitcoin might still have one more leg lower from here $50000-51000 zone towards the $41,000-43,000 mark, before finding support and turning bullish again. Please note that Fibonacci extensions are also pointing towards $41,200 and $37,000 targets as highlighted in the red here. We shall review the chart around the $41,000 mark to take a call on further direction.

Bitcoin is approaching the $51,000 mark at this point in writing and might be carving a triangle consolidation before turning lower again. Aggressive traders might consider selling again around the current price with a risk of around $59,000. Immediate resistance is also seen at $59,000, followed by $65,000, while support comes in around $45,000 levels respectively.

A break below the $45,000 mark will accelerate further to the $43,000 and $41,000 levels. Strong convergence is seen there as Fibonacci 0.382 retracement and previous support are seen around the $41,000 mark. Watch out for a bullish reversal there in the near term.

Trading plan:

Remain short, stop @ 60000, target @ 41000

Good luck!

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

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