Bitcoin remains inside the upward sloping channel and continues making higher highs and higher lows. Price has broken above the short-term resistance trend line and is getting ready for a new all time high towards $65,000 and why not higher. As long as price is inside the bullish channel trend will remain in bull's favor.
Blue upward sloping lines - bullish channel
Blue downward sloping line- bearish RSI divergence
The RSI in the Daily chart is not following price to new highs. So far we have seen price make two bearish divergences as price made two new highs and the RSI made lower lows. Will we see a third lower high in the RSI combined with a new high in BTC/USD? If this happens then the chances for a bullish trap and reversal will increase dramatically. A third bearish divergence will be a big warning for bulls to protect their profits even if price remains inside the bullish channel. A break below $53,500 will be a bearish sign confirming that BTC/USD is vulnerable to a bigger pull back.
