Red line- bearish RSI divergence
Blue downward sloping line- resistance
Blue lines- Fibonacci retracement levels
Black lines- bullish channel
Bitcoin is moving lower. Price is under pressure as expected and approaching $23,000. We warned traders when price was above $24,000 that a pull back was expected and imminent. There is downside potential towards $22,000 at least as price continues trading inside the upward sloping channel. Bitcoin continues trading inside the bullish channel since the June lows. However price remains below the major resistance trend line and bulls have still not managed to retrace more than 23.6% of the decline from $48,140. The RSI has started providing bearish divergence signals. The upside potential for Bitcoin is limited. A new low below $17,600 is expected until the end of the year. The overlapping price structure from June, looks more like a pause to the downtrend, rather than the start of a new upward movement.
