Red lines- bearish RSI divergence
Blue line- support trend line
Black line -resistance
Bitcoin price is under pressure trading below $29,500. In our previous posts we warned traders that Bitcoin price was vulnerable to a pull back towards the blue support trend line. The rejection at $31,000 and the bearish RSI divergence was a bearish combination. Recent price action confirms the importance of resistance around $31,000. The RSI has a negative slope making lower lows and lower highs. I expect Bitcoin price to continue its down trend towards the blue support trend line at $27,500-$26,500 area. This is important support. As long as price is below $31,000, we remain pessimistic for the near term.
