As the price of bitcoin plummets, the cryptocurrency may be bottoming out, according to reports.
On Tuesday, bitcoin was trading at $3,759.62, a 2.2% increase since its low at 5 p.m. on Monday on the Kraken crypto exchange, reported Marketwatch.
“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, according to Marketwatch. He noted that although the cryptocurrency had been oversold, its overall strength would allow it to bounce back.
The price had gone as high as $4,065 over a 24-hour period but dropped to $3,600. It appeared to rebound a bit on Nov. 26, spiking to $4,000, up 17%, then dropping to the lower $3,000s, reported CCN.com.
Bitcoin, the main player in the cryptocurrency market, has been sliding downward for weeks, leading to analyst fears that bitcoin miners, the people who make the computations that confirm such cryptocurrency transactions, would start shutting down.
Bitcoin is the best-known digital currency and could be seen as a barometer of what could happen to cryptocurrency as a whole. At one point, bitcoin was thought to be a potential for replacing physical currency worldwide by taking banks and other middlemen out of the equation and letting bitcoin owners move their own money directly.