Bitcoin on the cusp of surging to $9,800 or dropping to $6,500

Bitcoin is currently trying to gain the 50 percent Fibonacci retracement level as support.

A close above the 50 percent Fibonacci retracement level and a spike in volume could be used as confirmation that BTC will indeed rebound.

This is considered a bearish pattern that forecasts a 31.5 percent price drop that could take Bitcoin to $6,500.

Throughout the year, Bitcoin rose to levels of dominance not seen since 2017.

It seems like BTC dominance peaked at 73.4 percent and now it could be entering a corrective period as it recently moved below the 71.5 percent support level.

Due to the fact that assets that break out of ascending triangle patterns usually reverse to the breakout point, BTC could soon retrace to have a 60 percent market share.

Since BTC dominance moved below the 200-week moving average, it could be bound for a correction down to the 150-week moving average, which is also around 60 percent.

All of these coincides with one of the most recent reports by Binance, that suggests that BTC dominance will go back to the 50-60 percent range.

"We still believe in this, partly because BTC dominance was below 60 percent for an extended period, from May 2017 until June 2019. It has only been in the past three months or so that BTC dominance has shot up so dramatically, and the crypto-world has found its way of making everyone feel like a prisoner of the moment. Short-term wise BTC dominance may be sticking around," reads the report.

Bitcoin is currently sitting at a pivotal point marked by the $8,500 resistance level.