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  • Bitcoin has bounced back slightly on Thursday after Wednesday’s massacre.
  • There is a divergence forming on the daily Relative Strenght Index Indicator.

BTC/USD daily chart

Bitcoin has pushed 0.82% higher on the session after the epic price drop on Tuesday. It’s not much to write home about at this stage and it’s certainly not much of the 6.73% fall from the prior session. The daily timeframe is showing a massive bearish Relative Strength Index (RSI) divergence. This is when the price makes a higher wave high but the RSI indicator makes a lower high. On some occasions this could mean the price rise is running out of momentum.

The next key support zone on the downside is 8600.00 and if this breaks it would make a new wave low. There are some good technical signs though as the MACD histogram is above the zero midline and the signal lines are still also above the mid area. The trend is still technically moving higher so until a lower high lower low pattern has been confirmed the bulls still seem to be in charge.

Bitcoin RSI Divergence

Additional levels