FX.co ★ Technical analysis on Bitcoin for May 1st, 2023.

Blue lines- bearish RSI divergence

Bitcoin is trading around $28,470 after forming a lower high at $30,004. In our previous posts we warned bulls that the bearish RSI divergence was a warning for a highly probable trend reversal. The trend reversal has yet not been confirmed. A break below recent low of $26,972 would be such a confirmation. A break below the recent low would be a bearish reversal signal. If bulls are unable to defend the recent low, then we should expect price to move even lower towards our first pull back target around $25,000. Resistance is at recent high of $30,000. A break above this level will bring price to new higher highs towards $32,000. It is important to keep an eye also on the RSI to see if it continues to provide lower highs.