Investing.com - Bitcoin wavered around the $10,000 psychological level on Tuesday as analysts weigh the depth of the recent correction.
Bitcoin gained 2.3% to $10,540.2 on the Investing.com Index by 11:00 AM ET (15:00 GMT).
With the volatility typical of the largest cryptocurrency by market capitalization, bitcoin traded in a range of nearly $1,000 on Tuesday, crossing the $10,000 handle in both directions on several occasions throughout the session.
Its intraday low of $9,728.50 overnight, on what would have been its fourth-straight day of losses, implied a 30% plunge from the 2019 high of $13,929.8 reached just six days ago.
Despite the correction, the alt coin remains well above $7,888, where a two-week rally began on June 11. Although up 176% so far this year, bitcoin remains well below record highs of nearly $20,000 reached in December 2017.
Investing.com analyst Pinchas Cohen said that, despite the slight rebound, “the price is clearly teetering on the edge of a bear market”.
He noted that the recent pullback caused bitcoin to drop by $4,000, roughly two-thirds of the rally seen in June.
“Strictly speaking, that should be the maximum correction within a trend,” Cohen said in daily commentary, emphasizing that anything more would increase the probability of a reversal.
Cohen did warn however that the alt coin did not necessarily fit into traditional asset analysis and said he felt inclined to bet on further correction toward the $9,000 level.
In an even more bearish stance, Nouriel Roubini, chief executive of Roubini Macro Associates, once again repeated his call for bitcoin to zero and beyond.
Despite having lost a third of its value in less than a week, Roubini indicated that it was “still a long way to less than zero as its true value is negative, not zero, given its toxic externalities!”
“It will get to zero in due time,” he said in a tweet.
Cryptocurrencies overall traded lower on Tuesday, despite gains seen in the largest coins. The total cryptocurrency market capitalization fell to $305.25 billion, compared with $310.66 billion a day earlier.
Among bitcoin’s closest rivals, Ethereum rose 1.4% to $286.75, XRP advanced 0.7% to $0.39741, Litecoin increased 0.9% at $118.244, while bitcoin cash traded up 2.6% to $403.84.