Bitcoin trades dangerously close to $10,000 mark

Bitcoin (BTC/USD) dropped to its lowest level since late July at $9,467 on Thursday and brought in bargain shoppers to help the BTC/USD retake the critical $10,000 handle. With markets reacting positively to New York Financial Regulator approving Bakkt to provide custody services for Bitcoin, the pair's rebound extended to $10,540 late Friday. However, investors seemed reluctant to add to their positions while trying to asses what this announcement means for Bitcoin's future.

Although many see that this development attracting more institutional investors and opening the door for the introduction of altcoin futures, the market sentiment hasn't turned positive yet. With the exception of Ripple, the top-ten cryptocurrencies with regards to market capitalization closed the day in the negative territory on Saturday and are now having a tough time gaining traction. 

Meanwhile, in a press release on Friday, Globe Newswire said Satoshi Nakamoto, the mysterious person behind Bitcoin, will reveal his identity and vision for Bitcoin on Sunday. "After a decade of anonymity, Satoshi Nakamoto will break his silence in Part I of his “My Reveal” Sunday, Aug. 18, at 4 p.m. EDT on the Satoshi Nakamoto Renaissance Holdings website, and the Ivy McLemore & Associates website," the statement read. "In addition to his real-life identity, Nakamoto will use “My Reveal” to divulge such facts as his country of origin, education, professional background, and why he has yet to move any of his 980,000 bitcoins."

Technical outlook

After erasing 1.4% on Saturday, Bitcoin continues to edge lower on Sunday and was last seen trading at $10,174, down 0.8% on a daily basis. On the daily chart, the Relative Strength Index (RSI) continues to inch lower and is now at 43, confirming the near-term bearish outlook. Moreover, the 20-day Moving Average (DMA) fell below the 50-DMA today to support that view.

$10,000 (psychological level/Fibonacci 61.8% retracement of June rally) is seen as a critical support level and a drop below that level could cause the selling pressure to gather momentum. $9,500 (Aug. 15 low) and $9,000 (psychological level/Jul. 17 low/Fibonacci 78.6% retracement of June rally) could be targeted on the downside. On the other hand, a strong dynamic resistance seems to have formed at $10,800/$10,900 region (20-DMA/50-DMA/Fibonacci 50% retracement of June rally) ahead of $11,500 (Fibonacci 38.2% retracement of June rally).