Trading plan for Bitcoin for May 06, 2021

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Technical outlook:

Bitcoin has raised through $5800/500 levels today and might be testing its recent swing highs around $59000 mark before turning lower again. Since sub $65000 levels, the crypto has carved the first leg of a corrective drop towards $47000, followed by the second leg towards $59000 respectively. It is quite possible that bulls push through $60000 before giving into bears, going forward.

Bottom line remains $65000 mark for the above bearish structure to remain intact. Bitcoin is seen to be trading around $58000 levels at this point in writing and is expected to resume its 3rd leg lower towards $43000 and $41000 levels respectively. Immediate resistance is at $65000 mark, while support comes in around $53000 levels respectively. A drop below $53000 would be encouraging to bears and it would accelerate further.

Bitcoin is holding its one year strong uptrend and there are no signs of a bearish reversal yet. We are proposing a corrective drop towards $41000 levels, which is also the fibonacci 0.382 retracement of the entire rally between $3850 and $65000 levels respectively. Expect the rally to resume thereafter and push above $65000 levels.


Trading plan:

Remain short, stop @ 65000, target @ 43000 and @41000.

Good luck!



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Oscar Ton
Analytical expert
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