Bitcoin’s recovery is approaching 1.50% at press time on Friday, shrugging off the sudden 3% drop last night. As a bullish candle springs above the 50-day Exponential Moving Average (EMA) at $100,908, Bitcoin resurfaces above the $102,500 zone, which acted as a crucial support zone in May.
The persistent bullish failures to sustain an uptrend above $102,500 formed a head and shoulders pattern on the daily chart shared below. Bitcoin’s recovery on the day aims to invalidate the pattern if BTC closes above the zone.
However, the momentum indicators signal downside risk as the Moving Average Convergence/Divergence (MACD) shows a bearish trend with the average lines approaching the centre line. In addition, the RSI at 46 spikes towards the halfway line after the recent drop, signaling an overall decline in bullish momentum.
If Bitcoin's closing price holds above the $103,000 mark, it will mark a bear trap, resulting in a surge towards the all-time high at $111,980.
