Red lines- bearish RSI divergence
blue lines- wedge pattern
Bitcoin is trading around $23,064 after making a high at $23,950. In yesterday's analysis we warned Bitcoin bulls that price was vulnerable to a pull back below $20,000. Recent price action is showing that we might be at the beginning of such a pull back. Bitcoin has broken out of the wedge pattern. Price broke below the lower boundary providing us with a new sign of weakness. Combined with the bearish RSI divergence in the 4 hour chart, we can say that the chances for a pull back have increased. Price made earlier today a low around $22,520. Confirmation of our bearish view will come with the break of the recent low. Bitcoin is vulnerable to more downside.
