Blue lines- Fibonacci retracement levels
Red lines- bullish RSI divergence
Green line- resistance trend line
Bitcoin is trading around $26,600 after making a new lower low at $24,925. The RSI did not make a new lower low. The RSI has provided a bullish divergence in the Daily chart. Price justifies a bounce higher towards the green resistance trend line. Price has thus far retraced 38% of the entire upward movement. Resistance by the green trend line is at $27,900. Bitcoin is expected to challenge this resistance trend line. Short-term trend remains bearish. The bullish RSI divergence does not mean that this is a reversal signal. Bears need to be cautious, but there is no trend change confirmation yet. We remain bearish as long as price holds below the green trend line.
