Bitcoin rallied to all-time high around $67000 mark on Thursday before pulling back. The crypto is trading around $63000 at the time of writing and could drop through $52500 mark. Please note that it is also the fibonacci 0.382 retracement of the recent rally between $28600 and $67000.
Bitcoin seems to have completed a larger degree Wave (5) around $67000 mark. If correct, the crypto might be setting up for a huge bearish reversal ahead. A break below $28600 will confirm that bears are back in control.
A larger degree Wave 4 had terminated around $4000 mark in March 2020. Since then, Bitcoin has rallied through $67000 high subdividing into five waves. High probability remains for a bearish reversal going forward.
Alternatively, the recent upswing from $28600 through $67000 could be Wave 1 of (5). In that case, a corrective drop might terminate around $52500 or up to $42000-43000 zone. Thereafter, Bitcoin could resume higher towards $80000 at least.
The crypto has produced an engulfing bearish candlestick pattern on the daily chart. It means potential remains for a drop lower at least toward $52500 mark. Traders might want to stay aside for a while before entering fresh long positions there.
Finacademy Technical Team
USDJPY could be progressing into a counter trend rally toward 114.30-50 zone in the next few trading sessions.
Gold dropped to $1770 mark on Tuesday before finding some support. The yellow metal is still testing its intermediate trend line support connecting $1721 and $1758 levels respectively.
The US dollar index carves a meaningful top around 96.88 mark over the last week. The index reversed sharply on Friday confirming a bearish Evening Star candlestick pattern on the daily chart.