In previous posts we talked about Bitcoin being in a bearish short-term trend as long as price was trading below the key downward sloping resistance trend line. Bitcoin broke below the $39,550 low and reached as low as $37,615. Bitcoin remains in a bearish trend. There is still no confirmation of a trend reversal.
Red line - resistance
Bitcoin has now reached the 78.6% Fibonacci retracement of the entire rise from $29,000 to $69,000 all time highs. Price continues making lower lows and lower highs. Resistance is at $42,800-$43,500. As long as price is below this level, short-term trend will remain bearish. In the Daily chart we also have our first bullish RSI divergence. The RSI did not make new lows as price did. This is a signal that the downtrend is weakening. This is not a reversal signal. Only a warning.
