BUZZ-COMMENT-Bitcoin bear trap sprung and reversal signal given

March 3 (Reuters) - The bitcoin recorded a significant month-end bull signal Friday, which has drawn strong confirmation into March and this coinciding with a false break of the 200-day moving average.

Crytocurrencies have surged as Trump names five digital assets for the strategic reserve. The Bitcoin, which had lost nearly 30% in value since January 25 has recovered by around 21% from Friday's $78,917 low, a low since November.

Early Monday action has seen the coin back away from its $95,152 recovery high, but the bull signals are still valid.

Friday's hammer candlestick gave a good warning. Hammer candlesticks form when the market has sold off sharply but ends the session near the highs, leaving a long lower shadow. For a hammer to have significance there needs to be a preceding falling trend.

The 200-day moving average has supported the coin since mid-October 2024 and Friday's breach of the $82,106 line did trigger a strong bearish reaction. However, the market closed clear above the average and brought a scramble to cover shorts.

A bull reversal is underway, but the underlying bear trend remains intact while below $96,250, a resistance line taken off the January 20 $109,356 record high. The target on a break is $99,508, the sell-off high from February 21. A 61.8% Fibonacci retracement of the $109,356-$78,197 drop comes in at $97,453.

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