Bitcoin Nurphoto / Getty ImagesAfter a weekend of soaring above $42,000, Bitcoin fell more than 5% Monday.The coin traded lower at $9:06 AM after 10 consecutive days of gains. It was now trading at $39,295 after a 5.47% drop. ET.Marcus Sotiriou, GlobalBlock, stated that bitcoin closed technically above the 21-week EMA and the 100-day SMA on Monday.Subscribe to our daily newsletter 10 Things Before The Opening Bell.Bitcoin fell more than 5% Monday, after the largest cryptocurrency in the world surged above $42,000 during the weekend.The coin traded lower at $9:06 AM after 10 consecutive days of gains. It was now trading at $39,295 after a 5.47% drop. ET. It reached $42,606 Saturday, its highest point since mid-May.Craig Erlam, Oanda's senior market analyst, said Monday that bitcoin is showing some profit-taking after it broke $41,000. This level has been struggling with since May.Marcus Sotiriou (sales trader at GlobalBlock), said that some metrics still suggest an uptrend.According to Sotiriou, technically bitcoin closed above the 21-week exponential and 100-day moving averages on Monday. These are both key bull market support indicators.He said that bitcoin could fall to $36,000 or less before another rally.He said that investors are interested in a new law in Germany that allows institutional fund managers to invest up to 20% in cryptocurrency. These funds have a combined total of approximately $2 trillion in assets, which could translate to $415 billion to be put into the market. Monday, August 2nd was the effective date of the law.After reaching $65,000 in mid April, the highest ever price for bitcoin, Bitcoin has traded rangebound over the past few months. After Tesla's decision to accept bitcoin payments and China's clampdown on bitcoin mining, the coin experienced a major crash in May.Bitcoin has been staging smaller rallies in recent months after bullish comments by its largest proponents, such as Jack Dorsey, Cathie wood, and Elon Musk. The price of bitcoin rose due to speculation about Amazon's move into digital assets, fueled by a curious job posting.Bitcoin is up 34% over the past year.
