Bitcoin's 15-percent recovery from the 14-month low hit yesterday may have opened the doors for short-term price consolidation.
The leading cryptocurrency by market value dropped through the support of the trendline connecting the August 2015 and August 2016 lows and fell to $3,474 yesterday – the lowest level since Sept. 17, 2017 (prices as per Bitstamp). At that level, BTC was down 38 percent from the highs above $6,300 seen two weeks ago.
The drop was short-lived, however, and prices closed yesterday (as per UTC) at $3,939 – well above the trendline – validating the oversold conditions reported by the technical indicators. As a result, a bout of consolidation could be in the offing.