Bitcoin Market Update: BTC/USD breaks free from a triangle pattern

Bitcoin (BTC) settled at $10,125 after a head-spinning rally to $10,412 during late hours on Monday. The first digital asset has gained over 5% on a day-to-day basis, though it is mostly unchanged since the beginning of Tuesday. Bitcoin’s market capitalization surpassed $186 billion, while its market share decreased to 65.3% as some altcoins, like NEO and Stellar registered double-digit growth.

If the history of any guide, BTC/USD may be on the verge on a strong rally towards new annual high, provided that a move above $10,000 is sustained within the recent days. The Bloomberg Galaxy Crypto Index, which is based on the largest digital tokens, broke above a critical juncture at the 400 that served both as a resistance and the support since March.  A break above this level could create a pre-condition for a new bullish trend.

Cryptocurrencies have weathered the panic-selling storm that took place in March and seem poised to benefit from a wide-range of growing institutional interest. It is not just Bitcoin that is attracting interest -- alternative coins such as Ether and Bitcoin Cash seem to have bigger upside potential, Edward Moya, senior market analyst at Oanda, commented as cited by Bloomberg.

BTC/USD: Technical picture

BTC/USD broke the upper line of the recent triangle pattern, which is typically a bullish signal. The next important resistance comes at Monday’s high at $10,412. Once it is out of the way, the upside is likely to gain traction with the next focus on the annual high at $10,511.

On the downside, the support is created by $10,000. Now that this pivotal point flipped from the resistance into the support, the sellers may have a hard time pushing the price lower. If it is broken, the next barrier of $9,600 will come into view. Most likely, this area will attract new buyers and stop the sell-off.

BTC/USD daily chart