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14.10.202109:44 Forex Analysis & Reviews: Bitcoin makes new highs but bulls should be cautious.

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

In our last analysis we noted that most probably Bitcoin's upward movement was not finished. Staying inside the bullish channel is key for the up trend. Our expectation was to see price take some time to challenge the lower channel boundaries and then move to new short-term highs towards $59,000. Bitcoin price has already reached this target but the RSI has provided us with another warning.

Exchange Rates 14.10.2021 analysis

Blue lines- bullish channel

Orange lines - bearish RSI divergence

Despite making a higher high, the RSI has not followed. The RSI has provided us with a second lower high providing another bearish divergence. This is not a reversal signal but only a warning. A warning that bulls should not be overoptimistic. They should be cautious as a reversal is justified. The RSI making lower highs implies that the bullish trend is weakening. This could go on for some time without a reversal, nevertheless traders need to be cautious and protect their gains. At current levels I would not be a Bitcoin buyer. A pull back is justified and would provide better opportunities.

Alexandros Yfantis
Analytical expert of InstaForex
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