Bitcoin technically remains in a bearish trend as price continues making lower lows and lower highs in the near term since the top on February 10th. Despite making lower lows in the 4hour chart, the RSI is not following price and is making higher lows. This is a sign that the short-term downtrend is weakening.
Bitcoin has retraced more than 61.8% of the entire upward move from $32,800 to $45,800. It is common for Bitcoin to make deep retracements. As we mentioned above, the RSI has formed a bullish divergence. This is not a reversal signal. This is just a warning that the downtrend could soon be over. Bears need to be very cautious. If bulls manage to recapture $40,000, then we will have an added reversal signal.
