Trading plan for Bitcoin, November 09, 2021

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Technical outlook:

Bitcoin has rallied to an all-time high of around $68,500 in the past hour. The crypto has pushed through fresh highs alongside a bearish divergence on the daily Relative Strength Index (RSI) (highlighted in the lower section). Bearish divergence on the RSI could indicate a potential reversal in the near term. The crypto might reverse lower toward the $49,500-50,000 zone in the next few trading sessions.

The Fibonacci 0.618 retracement of recent upswings between $40,000 and $68,500 is also passing through the $49,500-50,000 zone. Furthermore, its new channel support trend line would also provide the necessary bullish bounce. Hence potential remains for a trend reversal if prices decline through $50,000.

Bitcoin is pulling back below the $68,000 mark at this point in writing and is expected to break below $60,000. Please note that breaking below the $56,200 level would open the door to test $49,500-50,000 respectively. Only a break below $40,000 will change the trend to bearish as bears take control back.

Trading plan:

Aggressive: Potential drop to $50,000 against $69,000 levels.

Conservative: Remain flat for now. Potential buy around $50,000 against $40,000 levels.

Good luck!

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

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