Red lines- short-term support trend lines
Blue lines- bearish RSI divergence
Bitcoin is trading around $38,288. Short-term trend remains bullish. Price continues making higher highs and higher lows. The RSI continues forming lower highs providing us with bearish divergence signals. The RSI suggests that the up trend is weakening. This of course is not a reversal signal. Only a warning. Traders need to be cautious as a pull back lower is imminent. A break below the short-term upward sloping red trend line will confirm the top and the start of the expected pull back. Until then, bulls remain in full control.
