Bitcoin remains in a bullish trend as price is making higher highs and higher lows. The recent high at $50,436 was not followed by a higher high in the RSI. This bearish divergence is the second one we see and the warnings of an imminent pull back should keep traders alert.
Blue line- bearish divergence
The RSI has not been following price to new highs for the last few days. This is a warning that the up trend is weakening. Bulls need to be cautious. Support is found at $46,800-$47,000 where the red upward sloping trend line is found. Breaking below this red trend line will be a sign of weakness. More downside will be expected. The RSI continues to provide bearish divergence signals. The chances of a pull back towards $45,000-$42,000 have increased.
The material has been provided by InstaForex Company - www.instaforex.com