Bitcoin is trading just above $45,000 price level. Price has turned lower from the recent high of $48,042 and is now challenging the upward sloping trend line support. Breaking below this support trend line will open the way for a move towards $42,000 at least as we explained in previous posts. Price is vulnerable to such a pull back after the warning from the RSI that we got.
Red line- support trend line
Blue line - horizontal support
Bitcoin justifies a pull back towards the blue horizontal support level specially if price breaks below the red trend line support. The RSI bearish divergence has warned traders that a turn around was imminent. Price has rolled over from $48,000 to $45,000 and there is potential for more downside. We can not tell yet if the $48,000 price level is an important reversal top, but for now we consider the $29,000 level as a major low and that a new bull wave has started and that we are its early stages. So far we consider the current decline as part of this upward movement that started at $29,000. We consider as the most probable scenario to see price forming higher lows and higher highs over the coming weeks.
