Bitcoin slide halts as market attempts to form a short-term bottom

Fibo Quantum

The bitcoin massacre took a pause Tuesday, with the best-known digital currency trading marginally higher.

In early trading, a single bitcoin

BTCUSD, +2.30%

 was last changing hands at $3,685.64, up 0.2% 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, are marginally lower to begin Tuesday. Ether

ETHUSD, +1.45%

was down 1.6% at $102.55, Litecoin

LTCUSD, +3.04%

was off 0.2% at $28.91, XRP

XRPUSD, +0.49%

the coin that runs on the Ripple protocol, was down 0.3% at 34 cents and Bitcoin Cash

BCHUSD, +1.77%

was trading down 0.4% at $168.70.

After tumbling more than 10% on Monday, futures markets are steady Tuesday. The Cboe Global Markets December contract

XBTZ8, +1.17%

is down 0.6% at $3,625 and the CME Group November contract

BTCX8, +2.77%

was up 1.8% at $3,675.

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