Bitcoin has fallen from nearly $53,000 to $42,000 in two sessions. Price made a strong reversal and provided a bearish signal. Through our latest analysis we warned traders and specifically bulls that there were worrying signs of a possible reversal. Yesterday's analysis also expect the $47,000 price level to be tested. Not only it was tested, support was broken and price fell towards $42,000.
Green lines - Fibonacci retracement levels
Bitcoin had been making higher highs but the RSI was not. This bearish divergence in the Daily chart was our first warning. Secondly we said that the 61.8% Fibonacci retracement level is a level that we usually see trend reversals. Price did exactly that. The decline was sharp yesterday. The recent high of $52,873 is an important high. Bulls need to break above this level in order for the uptrend to resume. Otherwise we consider this as an important top and that a new move lower has just started. Breaking below yesterday's low at $43,127 will be a confirmation that bears are in control of the trend. Our bearish scenario for a major reversal and a move back to $29,000 has now increased chances. Bears need to break price below $40,000 in order for the chances of the bearish scenario to increase. As long as price is below $53,000 I remain bearish.
