FX.co ★ Is Bitcoin preparing a major reversal?

Calling a move in Bitcoin that will eventually push price below $29,000 is a very bald call. But how probable is it? So far Bitcoin remains in a bullish up trend after a double bottom around $29,000 price level. Technically there is no reversal signal yet. However there are some signs that traders should not ignore.

Blue lines - bearish divergence

As expected from our last Bitcoin analysis, price is moving closer towards the $52,000 price level. The RSI is not following price to new highs. The RSI has provided another bearish divergence. This is a warning that the up trend is weakening. Price is also trading around the 61.8% Fibonacci retracement of the entire decline. In Elliott wave terms there are increased chances of this upward move from $29,000 is a wave C of wave 2, in other words, the final part of a counter trend move and a new impulsive move down should start soon, that will eventually bring price below $29,000. This scenario should not be ignored as there are more than 30% chances of this happening. For now bulls remain in control of the trend. If price starts to turn around, we will have more information on how probable the bearish scenario will be.