Bitcoin has been moving lower as expected by our analysis and has already reached the upper target area of our target $43,000-$40,000. The RSI in the 4 hour chart is showing bullish divergence signs. This is just a warning and not a reversal signal.

If Bitcoin makes a new lower low and the RSI provides a new bullish divergence, then we should expect a bounce towards $47,000-$50,000 to follow. Major resistance remains key at $58,000 area. So far price is making lower lows and lower highs. In the short-term the chances of a bounce are high as long as the RSI is diverging. Nevertheless we should not forget that the trend is bearish and sell offs and crashes start from oversold conditions in the markets. Traders need to be very cautious.