Bitcoin remains in a short-term bullish trend. Price continues making higher highs and higher lows. However as we mentioned in a previous post, the RSI is providing us with some bearish divergence signals implying that a pull back is imminent.
Red line - support
Blue line - horizontal support
Bitcoin has most probably made a short-term top at $48,042. Price is turning lower and I expect to see at least a pull back towards the red upward sloping trend line. My most probable pull back target is the blue horizontal support line around $42,000. I expect Bitcoin to make a higher low around $42,000 or lower before continuing its up trend. Resistance is important at $47,100 and if broken we could see a new higher high above $48,042.
