Three key reasons Dow plunge won't cause a bigger Bitcoin drop below $10K

The Bitcoin price dropped to as low as $10,374 across major exchanges, but a larger pullback is unlikely.

Three key reasons could buoy the near-term sentiment of Bitcoin.

When a stimulus gets approved, it will likely cause Bitcoin and the Dow to soar, potentially buoying BTC's momentum.

Bitcoin dropped to around $10,380 on Coinbase when the Dow plunged by over 300 points in the pre-market trading session.

Bitcoin has seen a relatively strong recovery.

BTC saw wicks below $10,400 on lower time frame charts but rebounded swiftly above it.

Considering the strengthening correlation, if stocks rebound after the initial market reaction, it could relieve some pressure from Bitcoin.

In the past two months, when Bitcoin consolidated just under a critical support level, it historically broke out.

10,500 is an important level that might decide whether Bitcoin moves towards the $11,100 to $11,300 resistance range or the $9,600 CME gap in the near term.

The confluence of analysts anticipating the BitMEX incident to have a lesser impact on Bitcoin in the near term and BTC recovering to the $10,500 support area maintains an optimistic medium-term outlook for BTC..