Bitcoin Price Analysis: At Risk of Pullback Due to Negative RSI Divergence

The four hour chart shows bitcoin’s rally is stalling near $9,000 with the negative divergence of the RSI pointing to ebbing bullish momentum. 

4H chart

Bitcoin rose to a fresh two-month high of $9,015 on Friday, surpassing the previous two-month high of $8,903 reached on January 15. 

While the price printed a higher high, the RSI printed a lower high, confirming a negative or bearish divergence. 

The indicator also witnessed a downside break of an ascending triangle earlier today. 

The cryptocurrency risks falling to the rising trendline support in the next 24 hours. If that line is breached, prices could test key support near $8,460 and $8,200. 

The negative RSI divergence would be invalidated if the hourly candle closes above $9,000. A failed bearish divergence is as good as a bullish breakout signal. 

A strong move above $9,000 would expose the 200DMA at $9,100, above which major hurdles are seen at $9,400 and $10,350, as tweeted by market analyst Josh Wager.