Bitcoin is trading close to $43,000 and has formed a short-term bullish channel. We continue to consider this bounce as a counter trend bounce that will soon end and the downtrend will resume. Price is still below the key downward sloping resistance trend line and as long as this is the case, we remain pessimistic for Bitcoin price.
Blue light lines- bullish channel
Red line- major resistance trend line
Bitcoin is bouncing higher as expected after the heads up from the RSI and the bullish divergence in the 4 hour chart. Price is making higher highs and higher lows inside the light blue bullish channel. Price can reach $45,000 if it continues this upside bounce. Our most probable scenario however is for price to get rejected and reverse short-term trend to align with the Daily bearish trend as we believe the decline from its all time highs is still not over.
