Bitcoin (BTC) is back in the $10,150 region and grinding along a critical level of support following a surprising 7% rally to the upside on Monday.
The rally rapidly subsided, with BTC falling 3.3% in a matter of minutes before eventually succumbing to more selling pressure that resulted in a further 3% move to the downside.
For now, Bitcoin is delicately poised above the lower side of the symmetrical triangle, which began to form back in July.
It is now in confluence with the psychological $10,000 level of support. If this breaks to the downside, Bitcoin can be expected to fall to the $8,000 region for the first time in more than two months.
However, if support can hold, it would be remarkably bullish for Bitcoin, which has been in a two-month consolidation pattern following a 350% rally from $3,150 to $14,000 earlier this year.
A consolidative move like this typically ends in a volatile move in either direction, although it’s interesting to note that retail interest in Bitcoin remains as low as it was during the 2018 bear market.
This means that the significant rally to the upside earlier this year can only be attributed to institutions diving into the digital asset ecosystem.
Crypto investment firm Grayscale revealed it has $2.7 billion in cryptocurrency assets under management, while Fidelity also launched a native cryptocurrency investment platform.
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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.