Bitcoin price has stabilised after an aggressive crush earlier. The price has been attempting to regain ground and get off the mid-November lows below the $6,000 threshold. As the asset managed to stay above $5,500 and looks cheap, some market participants may consider the current levels as attractive entry points for opening longs.
The sell-off is probably already behind us, though the bearish risks remain as the recovery momentum looks too timid and limited for the time being. There were no substantial changes in the market sentiment over the past few days, but the ongoing consolidation with some upside bias signals there is a potential for a more sustainable rebound down the road.
Technically, the digital currency has been capped below the $6,400 area. The BTC/USD pair needs a clear break above this local resistance to stage a more substantial and steady corrective rebound from this year’s lows. The longer the coin remains below this level, the higher the risk of another sell-off with a break below the $6,000 figure.