Green line- resistance
Red lines- bullish RSI divergence
Blue line- support
Bitcoin is trading around $26,400 bouncing higher off the $24,925 low where we also find the horizontal support. This is a support level where we also witnessed the bounce off this level towards $31,790. We already have a double bottom formation at this area. Price action has confirmed the importance of this support level. As we explained in previous posts, the bullish RSI divergence suggests that a bounce higher was imminent. Price is currently moving higher as expected and we expect the green resistance trend line to be tested. A new lower low is still in play. The bullish RSI divergence is not a reversal signal. Only a warning.
