FX.co ★ Warning signals for major cryptocurrencies.

Both Ethereum and Bitcoin remain in a bullish short-term trend as price continues making higher highs and higher lows. However the RSI in both cryptocurrencies in the 4 hour charts has provided us with a bearish divergence warning signal. Both cryptocurrencies are vulnerable to at least a short-term reversal.

Bitcoin

Green lines - short-term bullish channel

Black lines - bearish RSI divergence

Bitcoin is still trading above $45,000 and remains in a bullish short-term trend as long as price is above $43,685. Price is vulnerable to a pull back towards the red upward sloping support trend line. The RSI is warning of an imminent reversal specially after price exited the short-term bullish channel. Price however continues making higher highs and higher lows.

Ethereum

Red lines - bearish divergence

The same stands for Ethereum. Price remains inside the bullish channel. Support by channel support is at $3,084 and if broken we should expect a bigger pull back. The RSI is providing a bearish divergence signal. In both cryptocurrencies these signals are just warnings and not reversal signals. The up trend is weakening. Exiting the bullish green channel would be the first important sign of a possible reversal in Ethereum price.