Bitcoin's short-term bullish trend remains supported.

Bitcoin pulled back towards $47,000 and touched the upward sloping red trend line. Price respected the trend line and is now bouncing higher around $48,300. Bitcoin trend remains bullish as long as price is making higher highs and higher lows.


Red line - support

Blue line - bearish divergence

Bitcoin has touched the upward sloping trend line three times so far and each time price bounced higher. This is happening again. Price action has confirmed that the red trend line is key support and breaking it will be a bearish sign. The RSI is warning us with the bearish divergence that a turn around is imminent. However so far price has not made any confirmed trend reversal. Breaking below $47,000 would be a bearish sign and would increase chances of a trend reversal in Bitcoin and a bigger pullback.

The material has been provided by InstaForex Company -