Bitcoin briefly reenters four figures before a bounce takes the market up $400 in minutes amid highly volatile conditions.
Bitcoin (BTC) fell below $10,000 on Sep. 4 as selling pressure combined with strength in the U.S. dollar to spark more pain for hodlers.
Cryptocurrency market daily snapshot, Sep. 4. Source: Coin360
BTC price triggers bulls with $9,900 bounce
The largest cryptocurrency had attempted to reclaim $10,500 on the day, before capitulating to lose five figures for the first time since late July.
The move down comes amid renewed bullish signs in the U.S. dollar currency index (DXY), with which Bitcoin had shown increasing inverse correlation in August.
At press time, volatility was noticeable as BTC/USD fluctuated around the $10,000 mark. A rebound took the pair to $10,400 minutes after the dive to lows of $9,900.
BTC/USD 1-day price chart. Source: Coin360
Analyst eyes bottom formation and new “altseason”
For Cointelegraph Markets analyst Michaël van de Poppe, there was a keen interest in establishing bottom support — something which would likely occur at the outstanding Bitcoin futures gap of $9,700.
“If we want to establish a bottom formation, I'd say we need to test the low or clearly construct a strong support,” he tweeted.
“In that regard, dead cat bounce towards high $10K's, which then ends up with another dropdown to establish that support.”
Van de Poppe added that weakness in Bitcoin could thereafter spark fresh gains for altcoins. Bitcoin’s market cap share stood at 57% on Friday, its lowest since June 2019.