FX.co ★ Technical analysis on Bitcoin for May 12th, 2023.

Blue lines- bearish RSI divergence

Green lines- triangle pattern (broken downwards)

Bitcoin is trading below $27,000. As we explained in previous posts, Bitcoin's run of new higher highs was soon to end because the RSI was not following. Not only this, but the new triangle pattern also broke to the downside a couple days ago. All these indicators showed that price was vulnerable to the downside. From $31,000 price has so far declined approximately 15%. Bitcoin today is making new lower lows with the RSI having also a negative slope. The RSI has still not reached oversold levels so we can not talk about a short-term bottom yet. Bitcoin is expected to be under pressure over the coming days and we continue to expect price to reach our first pull back target of $25,000.