The bleeding seems to have been stymied, for now, after Bitcoin’s (BTC) brutal selloff from a rejection at $12,000 is being held around $10,000. Buyers stepped in to push the crypto back above the key psychological mark, after BTC sold all the way down to $9,400.

Looking first at the 12-hour chart, we see buyers pouring in to keep the crypto safely above $10,000 (or short-sellers taking profit). A deep buy wick signals this, as does the highest volume bar in the last few days. It is no surprise that price held first at $9,400, as this has been a key level during the present market structure, during July especially.

A lot of buying has flooded inBTC chart by TradingView

If price holds here, we can eject the brief fall to $9,400 from our analysis of the market structure as only a brief period of noise. Although scary, only significant candle closes on key time periods – like the daily, or 4-hour – count in our analysis. This rapid reclaiming of $10,000 is certainly auspicious of it holds.

Looking at a cleaner 4-hour chart, we can now highlight the possibility of a sideways consolidation.

Slight chance of a new consolidationBTC chart by Trading View

This is fairly likely to play out if price can hold this level. Buyers need to remain resilient in keeping Bitcoin above $10,000, and we’ll see whether or not this is the case in coming days

Looking at a marked up 4-hour chart, we see the alternative – and it’s not pretty. Bitcoin is unlikely to hold again above $9,000 if this level breaks, as it would be the third test of this floor since June.

Worst case scenarioBTC chart by Trading View

The bottom of this channel is confluent with the sub-$8,000 price level that many analysts had been calling for, as the appropriate floor of a Bitcoin retrace after the 2019 bull run.

It is anybody’s guess if $10,000 will hold. Bitcoin has certainly shown its attraction for buyers during 2019, who at key moments have stepped in to preserve a strong medium term uptrend. This is one of those moments. We will have to see if there is follow through here into a new consolidation pattern; if not, $8,000 and below is ultimately likely.

The views and opinions expressed here do not reflect those of and do not constitute financial advice. Always do your own research.