Bitcoin is trading very close to an 8 month high. Price has reversed its trend back in March and since then it is making higher highs and higher lows. Trend remains bullish but we now observe some warning signs by the Daily RSI.
Short-term resistance is at recent highs at 9070$ while support is found at 7400$. The Daily RSI as shown above is showing some bearish divergence signs. This is a warning and not a reversal signal. If price breaks below 7400$ we then have confirmation of the trend reversal and price should at least test the 38% Fibonacci retracement level at 6800$. If the entire leg up from 3130$ is complete at 9070$, we could even see a deeper pull back towards the 61.8% Fibonacci retracement. However it is too early to talk about this scenario. There are still hopes from bulls that a new higher high could be made. The 8030-7850$ area is also important short-term support. Breaking below it will increase the chances of breaking below 7400$. As long as price is above this level we could see new higher highs above 9070$.
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