Blue lines- bearish RSI divergence
Bitcoin is trading around $27,300. Bitcoin is showing reversal signs and as we explained in our previous posts, price is vulnerable to a pull back towards $25,000. Bitcoin's up trend has shown weakening signs with the bearish RSI divergence. The chances for a pull back have increased. Although price could move higher to make a new higher high, we believe that upside potential is limited. A good pull back at least towards $25,000 should be seen first before a new upward move starts. The RSI has negatively sloped making lower lows and lower highs. I expect Bitcoin to find support at the previous highs around $25,000.