Red lines -support trend lines
Blue lines- RSI Bearish divergence
Bitcoin is trading at new highs around $37,940. Technically we remain in a bullish trend as price continues making higher highs and higher lows. At the same time, the short-term red upward sloping support trend line continues to be respected. Despite the several pull backs, bulls have managed to defend the first red upward sloping trend line. The RSI on the other hand continues to provide lower highs, thus bearish divergence signals. This is not a reversal sign but only a warning. The chances for a pull back have increased dramatically.
