Red lines- bullish RSI divergence
Black lines- Fibonacci retracements
Bitcoin remains in a bearish trend making lower lows and lower highs. Price is approaching the next major Fibonacci retracement level at $17,200 where we find the 78.6% Fibonacci level. Although price is making new lower lows, the RSI is not. The RSI is making higher lows. This is a sign that the downtrend is weakening. This is a bullish divergence. However this is not a reversal signal. This is a warning that bears should not ignore. The chances of a strong reversal to the upside have increased. The RSI is once again at oversold levels. A bounce higher might come soon. Traders need to be prepared.