Bitcoin is trading inside bullish channel.

Bitcoin is making a pull back after the recent high at $57,758. Price remains inside the short-term bullish channel and although a move lower towards $53,000 is not out of the question, the most probable scenario is for price to resume its up trend towards $59,000.

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Blue lines - bullish channel

Black lines -expected path

Bitcoin is expected to challenge the lower channel boundary between $52,000 and $53,000. Then we expect to see a resumption of the upward move that started back in $39,500 area, targeting $59,000. If this scenario is confirmed, it will be very important to check on the RSI as another bearish divergence will increase the chances of a major reversal. So far we have one bearish divergence but a second one will be a more important warning to bulls. Breaking below $52,000 and out of the bullish channel will also be a bearish signal.




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Alexandros Yfantis
Analytical expert of InstaForex
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