Bitcoin price stalls at $102,700 after retracing from $105,700 peak on overbought RSI
Bitcoin forms bearish wedge pattern
Bitcoin’s price rally in May extended its uptrend from April to a four-month peak of $105,700. But this upside came at a technical cost—daily RSI readings pushed into overbought territory, often a sign of stretched conditions.
Over the weekend, BTC formed a rising wedge, a historically bearish chart pattern, hinting that bullish momentum could face pressure.
That warning materialised on Monday. After touching the $105,700 high inside the wedge pattern, Bitcoin reversed sharply and dropped 4.8%, falling to $100,700—a four-day low that marked a clear bearish breakout from the wedge. The $100,000 psychological zone stayed untouched, thanks to support at the 50 EMA on the 4-hour chart, which halted the decline. A modest recovery lifted BTC back to $102,700 by Monday’s close, though the bounce was capped by resistance from the 20 EMA on the same 4-hour timeframe.
Bitcoin faces short-term resistance at 20 EMA while Fear & Greed index signals optimism
On Tuesday, Bitcoin opened flat at $102,700 and pulled back again to $101,500 during the Asian session. The 20 EMA resistance held once more. By the European session, price action hovered between the 20 and 50 4-hour EMAs, reflecting tension between buyers attempting to push for a rebound and sellers defending the short-term resistance zone.
BTC price dynamics (April - May 2025). Source: TradingView
This banded movement mirrors the softening of market momentum. The 4-hour RSI has dropped to neutral levels, suggesting indecision, while the daily RSI has cooled off from overbought territory but still hovers near the 70 threshold—balancing between strong and overstretched.
Sentiment indicators align with this pause. The Fear & Greed Index sits at 70, implying strong optimism but not yet extreme greed. That leaves room for further price gains if support holds. Earlier in May, the index dipped into neutral territory when the rally paused, but sentiment improved as prices surged again.
Now, Bitcoin is caught between two pressures: cooling technical momentum that could drag prices further and a still-positive macro sentiment that could help price break above the EMA band. Whether bulls can convert this indecision into a renewed upside may depend on a clear reclaim of $103,000 and a push beyond the 20 EMA barrier.
Bitcoin jumped after the U.S.-China tariff deal failed to break the wedge resistance. RSI capped the rally as Bitcoin retraced into the $103,000 to $104,000 range.
