Trading plan for Bitcoin for October 20, 2021

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Technical outlook:

Bitcoin had raised through $64,500 level on Tuesday, shy by a few points to hit all-time highs before pulling back. The crypto is facing resistance around the backside of the previous support trend line as seen on the daily chart. A corrective drop remains possible towards the $48,000 levels in the near term, before resuming its rally further.

Bitcoin could also reach fresh highs from current levels without producing any meaningful correction. Please note that prices are reaching overbought territory hence it is advised not to initiate fresh long positions now. Traders might keep booking profits at each high as Bitcoin reaches the $65,000 mark.

Bitcoin bears need to break below its channel support around the $48,000 mark to be back in control. Until that happens, the crypto is good to be bought on dips, with risk below the $40,000 mark. The next buying zone lies between $48,000 and $50,000 levels, which could push prices through the $70,000 mark going forward.

Trading plan:

Potential target at $65,000 is almost reached. Wait for a corrective drop towards $48,000-50,000.

Good luck!

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

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