The bitcoin massacre took a pause Tuesday, with the best-known digital currency trading higher.
In Tuesday trading, a single bitcoin
was last changing hands at $3,759.63, up 2.2% since Monday’s level at 5 p.m. Eastern Time on the Kraken crypto exchange.
Read: Bitcoin is on track to do something it hasn’t done in 4 years
After a dire stretch for bitcoin, one chart observer said signs point to a potential bottom around current levels. “After dropping in excess of 40% in the last two weeks, with very little news to drive the move, bitcoin is trying to build a base around the $3,500 – $3,700 level in the last three days,” wrote Nick Cawley, markets analyst at Daily FX.
“While the longer-term chart setup remains negative, with a test of $2,970 likely—in the short-term the charts are showing the cryptocurrency heavily in oversold territory, which may produce a relief bounce higher,” he added, citing the relative strength index (RSI).
The RSI is a technical indicator that measures the magnitude of recent price movements to assess whether an asset is oversold or overbought.
Read: Bitcoin is imploding — here’s where bitcoin bulls and bears see it headed from here
Altcoins, the group of coins other than bitcoin, have erased early morning losses and are trading higher. Ether
was up 1.7% at $106.04, Litecoin
was up 3.7% at $30.02, XRP
the coin that runs on the Ripple protocol, was up 0.2% at 34 cents and Bitcoin Cash
was trading at $173.50, up 2.4%.
After tumbling more than 10% on Monday, futures markets have turned higher Tuesday. The Cboe Global Markets December contract
is up 1.9% at $3,715 and the CME Group November contract
was up 3.2% at $3,720.
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Aaron Hankin is a MarketWatch reporter in New York who covers cryptocurrency and financial markets.
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