Bitcoin's $780 Price Recovery Makes Friday's Close Pivotal

View Bitcoin created a bullish hammer candle yesterday, making today's UTC close pivotal.

A close above $10,380 will likely invite stronger buying pressure and yield a rise toward $11,000.

Bitcoin's $780 recovery from an 18-day low has neutralized the bearish setup, but a strong follow-through is now needed to put the bulls back in charge.

Notably, the price bounce from $9,600 to $10,380 has taken the shape of a candlestick pattern named "Bullish hammer", as seen in the chart below.

On Thursday, BTC fell to $9,600 only to rise all the way back to $10,380 before printing a UTC close at $10,271 - up 1.18 percent on the day.

Traders usually wait for a strong follow-through - preferably a UTC close above the hammer candle's high - before hitting the market with fresh bids.

The probability of BTC printing a convincing close well above $10,380 would rise if the flag ends with a bullish breakout.

While a close above $10,380 is expected to bode well for BTC, a full bull revival needs an upside break of a three-month contracting triangle seen in the chart below.

A close above $10,822, if confirmed, would imply a resumption of the rally from lows near $4,000 seen on April 2.

The lower edge may come into play if the cryptocurrency closes below $10,000 today, taking the shine off the bullish hammer candle.