In our previous posts when Bitcoin was trading around and below $45,000 we mentioned that a bounce towards $49,000 was imminent as price confirmed several times the support at $43,000 and respected it. Yesterday we saw Bitcoin price reach $48,430 area very close to our target. I now start to see that the risk reward ration does not favor bulls.
Red lines- bullish divergence
Green lines- Fibonacci retracements
Green rectangle -bounce target area
Short-term trend remains bullish as price continues making higher highs and higher lows. Price could continue higher towards the green rectangle at $49,000. However bulls need to be very cautious as the $49,000-$50,000 price range is a very important resistance. I expect price to turn lower from this area and most probably break below $43,000 towards $35,000-$30,000. For now there is no reversal confirmation, however I believe it should be expected soon.
