Bitcoin has fallen to the $9,700 region following the underwhelming launch of Bakkt’s Bitcoin futures product.
It is now below the 100 exponential moving average (EMA) on the daily chart, which is currently residing at $9,900.
An increasingly likely target to the downside is $8,830 as it is in confluence with the daily 200 EMA and acted as a level of resistance that suppressed price at the end of May.
However, before that comes to fruition, Bitcoin needs to retest the $9,350 level of support, which has provided a solid foundation over the past two months.
Another pattern to consider is the ongoing symmetrical triangle that has been forming since the $14,000 high in June.
There has since been four lower highs and four higher lows, meaning the range is tightening towards a breakout in the coming days and weeks.
If price can bounce off the lower side of the triangle, it could well prompt a breakout to the upside, with potential targets around the $10,600 level.
The disappointing price action over the past few days has coincided with Bakkt’s Bitcoin futures launch. Despite being heralded as the first regulated gateway for institutions to trade Bitcoin, the initial volume has been utterly uninspiring, with just four Bitcoin being traded today at the time of writing.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.