Bitcoin has bounced back to $42,000-430,00 levels after having dropped to the $40,000 mark on Tuesday. The crypto might be preparing to resume its rally from the current price ($42,000) or from around $37,500. As highlighted on the daily chart, the Fibonacci 0.618 extension of the drop between $53,000 and $43,000 is seen around the $37,100-200 mark.
The high probability remains for a bullish bounce if prices drop to the $37,000-500 zone. Apart from that, the level of $37,500 is close to previous price support seen around $37,300. Bulls might remain posed to initiate fresh long positions around the indicated zone and push BTC higher to $65,000. Immediate support is seen at $37,000-300, while resistance is seen near $48,500 respectively.
The counter-trend drop that had begun from the $53,000 level would complete near the $37,500 mark. If this is the case, bitcoin would resume its uptrend towards $65,000 and higher. Only a break below $35,000 will nullify the above bullish structure.
Potential buy zone is 37300-500 against 35000, targeting above 53000.
Good luck!The material has been provided by InstaForex Company - www.instaforex.com