$BTC could decline if it closes below its 50-day EMA

Bitcoin price drew liquidity from its Fair Value Gap (FVG) around $108,064 on Monday and declined by 2.1% the following day. BTC has retested and found support multiple times around the 50-day Exponential Moving Average (EMA) at approximately $103,100, highlighting its strength as dynamic support. At the time of writing on Friday, it trades at around $104,500.

If BTC continues its correction and closes below the 50-day EMA at $103,100 on a daily basis, it could extend the decline to retest its key psychologically important level at $100,000.

The Relative Strength Index (RSI) momentum indicator on the daily chart reads 47, below its neutral level of 50, indicating that bearish momentum is gaining traction. The Moving Average Convergence Divergence (MACD) indicator displayed a bearish crossover last week. It also shows rising red histogram bars below its neutral level, indicating bearish momentum and giving credence to the downward trend.

BTC/USDT daily chart

BTC/USDT daily chart

However, if BTC closes above its FVG level at $108,064, it could extend the recovery toward retesting its May 22 all-time high of $111,980.