Bitcoin (BTC) has recovered slightly from six-week lows seen yesterday and could see a short-term corrective bounce to $3,500.
The leading cryptocurrency is currently trading at $3,416 on Bitstamp, having hit a low of $3,322 on Tuesday – a level last seen on Dec. 17.
The 2.8 percent recovery could be associated with the oversold readings on the short duration technical indicators seen 24-hours ago. Moreover, Monday’s high-volume range breakdown and the drop to multi-week lows had pushed the relative strength indices on the hourly and 4-hour charts below 30.00 With the minor rally, however, those RSIs have moved back to undersold territory and are now in line with the bearish view put forward by a convincing break below $3,500 seen on Monday.
Even so, the drop to December lows near $3,100 may not happen immediately as stronger signs of temporary bearish exhaustion have emerged on the longer duration charts.