Bitcoin Back Above $10K But Gains Could Be Short-Lived

Bitcoin is back above $10,000, but the gains could be short-lived, the price charts indicate.

Having breached key support yesterday, prices on CoinDesk's Bitcoin Price Index (BPI) fell to a two-week low of $9,627.89 at 01:14 UTC today. In the last few hours, bitcoin (BTC) has managed to regain some poise and moved back above $10,000. At time of writing, bitcoin was around the $10,300 mark.

The 15 percent drop from the weekend high of $11,942.25 signals a continuation of the series of lower highs on the price chart, suggesting the bears remain in control.

That said, the quick rebound from $9,627.89 to $10,000 adds credence to the argument that the cryptocurrency could be forming a base around $10,000.

However, the 4.9 percent rally from the intraday low of $9,627 looks like a technical correction amid a bigger downtrend. Further, a break below $9,780 could result in sharp losses.