Bitcoin vulnerable to a pull back for week starting July 17th 2023.
July 14, 2023 4:22 pm
Red lines- bearish RSI divergence
Blue line- support trend line
Black line- broken horizontal resistance
Near the end of the second week of July Bitcoin is found breaking upwards above the $31,000 price level clearly influenced by the judge’s ruling in the SEC VS Ripple case. Price has finally broken out of the sideways trading range it was in for a couple of weeks and is now making higher highs. Despite the new higher high in price, the RSI is making another lower high providing a bearish divergence. This is an important warning to bulls that should not be ignored. This is not a reversal signal, but a warning that the up trend is weakening. The second lower high in the RSI suggests that we are close to a bearish reversal. Support is found at $30,000-$29,500 and a break below this level will confirm the short-term trend change. If price starts a pull back, we should expect Bitcoin to reach and test the blue upward sloping support trend line around $27,000. Traders need to be cautious. For now there is no sign of a reversal as price continues making higher highs and higher lows.
The material has been provided by InstaForex Company – www.instaforex.com
Red lines- bearish RSI divergence
Blue line- support trend line
Black line- broken horizontal resistance
Near the end of the second week of July Bitcoin is found breaking upwards above the $31,000 price level clearly influenced by the judge’s ruling in the SEC VS Ripple case. Price has finally broken out of the sideways trading range it was in for a couple of weeks and is now making higher highs. Despite the new higher high in price, the RSI is making another lower high providing a bearish divergence. This is an important warning to bulls that should not be ignored. This is not a reversal signal, but a warning that the up trend is weakening. The second lower high in the RSI suggests that we are close to a bearish reversal. Support is found at $30,000-$29,500 and a break below this level will confirm the short-term trend change. If price starts a pull back, we should expect Bitcoin to reach and test the blue upward sloping support trend line around $27,000. Traders need to be cautious. For now there is no sign of a reversal as price continues making higher highs and higher lows.
The material has been provided by InstaForex Company – www.instaforex.com
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