FX.co ★ Bitcoin forms potential reversal pattern.

Bitcoin price broke below $30,000 level yesterday but the pressure by bears was short-lived and price soon after reversed and closed above $32,000.

Blue lines -bullish divergence

The Daily candlestick pattern for yesterday gave us a reversal hammer pattern. Followed by a strong up day today, increases the chances of a reversal. The RSI did not make a new lower low yesterday as price did. This bullish divergence is another sign that the downtrend is weakening. Of course bulls are still not in control of the trend. They will need to push price above the major resistance around $40,000-$41,000. Until then bears are in control of the trend. For yesterday's low to be a major low, bulls will need to break above the red rectangle resistance.