Bitcoin today is a great example of a bear trap. The crypto corrected highs above $13,000 for the first time since the drop from the highs of June. BTC/USD remained pivotal at $13,000 with short-term support formed at $212,800.
However, the rise was just but a bear trap as failure to correct higher has opened the Pandora Box amid heightened volatility. The dropped cleared the support by the short-term trendline and explored the levels below $12,200 support. BTC/USD tested $12,000 before correcting to the current $12,404.
The bulls seem to be waking up and recovery is possible in the coming sessions. Relative Strength Index (RSI) is in the oversold but revamping the trend upwards as an indicator to building bullish momentum. Moving Average Convergence Divergence (MACD) has dived into the negative side and suggest continued bear dominance.
BTC/USD 15-mins chart