Bitcoin is attempting to switch to a recovery mode on Monday after a major sell-off during the last week. The bullish momentum looks too timid so far to call a reversal from the area of two-month lows below $6,500, reached on Sunday.
Having dipped to as low as $6,387.50 yesterday, BTCUSD is trying to regain the $7,000 mark as a break above will ease the immediate downside pressure. By the way, the cryptocurrency market was hit hard generally last week amid the never-ending fears over global regulation as well as crypto ads blocks by major social networks including Twitter.
However, the current bearish trend starts to signal some signs of exhaustion and may come to an end in the nearest future. Technically, the digital currency is ready for a corrective rebound. Bitcoin managed to hold above the $6,000 threshold and looks attractive for buying at the same time. Following a break above $7,000, the price will target the next local resistance $7,600. The current levels may be especially interesting for long-term investors.
By Helen Rush
Senior Analyst at Capital Markets