Bitcoin: timid signs of recovery

Bitcoin: timid signs of recovery

Bitcoin / Dollar BITFINEX:BTCUSD


Bitcoin             is making recovery attempts on Tuesday but the momentum looks too slow and unconvincing to call a bottom and bet on a more significant rebound for the time being. The price has met support close to the $6,600 area yesterday, and now the coin is trying to get back above $7,000.

The market is overwhelmed with the industry security issues again, after the recent hack on a small South Korean cryptocurrency exchange. This has fuelled the recent decline in the BTCUSD             pair and also added to skepticism in the market. Against this backdrop, BTCUSD’s bullish potential is rather limited at the moment, and the downside risks still persist.

From the technical point of view, the coin needs to stage a corrective rebound above the $7,000 level in order to avoid further losses in the short term. Otherwise, the digital currency could drop to fresh two-month lows below $6,600 and deepen its bearish trend . In the medium term, the coin’s upside target still comes at $7,800.