Red line- bearish divergence
Black lines- bullish channel
Blue lines- Fibonacci retracements
In previous posts we warned traders who were long Bitcoin or wanted to buy Bitcoin that the price structure was suggesting a pull back at least towards $22,000 and the lower channel boundary. All indicators were suggesting that it was not possible for bulls to hold price above $24,000 and continue higher. We mentioned many times in previous posts the fact that Bitcoin was unable to retrace more than 23.6% of the entire decline from $48,000. Combined with the fact that the RSI provided multiple bearish divergence signals, it was a matter of time to see price under pressure. Exiting the bullish channel is very probable and as we said yesterday, we continue to consider the entire upward move as a counter trend bounce and we will most probably see Bitcoin below $17,600 over the coming weeks.
