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 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 BTC/USD pair and also added to scepticism in the market. Against this backdrop, BTC/USD’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.