Bitcoin expected to bounce higher this week.

Bitcoin is trading above $44,000 price level and the key short-term support area that we mentioned in our previous post. Bitcoin short-term price action and RSI price action point to a short-term bounce at least. Bitcoin has many chances of reaching $49,000 again, this week.

Green lines- Fibonacci retracements

Red lines - bullish divergence

Green rectangle - bounce target area

Bitcoin is in a bearish short-term trend. Price is making lower lows and lower highs. The RSI is not following providing us with a bullish divergence signal. As long as price is above $43,000, there are increased hopes for a strong bounce towards $49,000. So far the 38% Fibonacci retracement has held. As long as this support area remains intact, price will be expected to move higher.