Cryptos: Bitcoin Rebounds, But Expects Further Downside, Says Analyst

Bitcoin prices moved higher on Tuesday, recovering part of the prior session’s losses that saw the digital currency trade to its lowest level in two weeks.

In Tuesday afternoon trade, bitcoin BTCUSD, -0.06%  was changing hands at $3,915.70, up 0.8% since Monday’s level at 5 p.m. Eastern time on the Kraken exchange.

Read: Dow futures climb as China trade talks resume

What are analysts saying

Despite the overnight recovery, analyst Jani Ziedins of the CrackedMarket blog said bitcoin is far from out of the woods. “Bitcoin cannot escape $4k resistance even after poking its head above it the last week. If dip buyers have not come to the rescue yet, it means they are not coming,” he wrote.

“An investment that refuses to go up will eventually go down. Bitcoin owners need to be prepared for more near-term weakness.”

Read: This Canadian crypto trader sent $75,000 bitcoin to Quadriga’s exchange—then it went bust

Altcoins and futures

Smaller digital currencies, often referred to as altcoins, were mostly lower on Tuesday. Litecoin LTCUSD, +0.31% fell 0.2% to $58.08, Bitcoin Cash BCHUSD, -0.06% was down 0.5% at $155.70, XRP XRPUSD, +0.30% fell 1.1% to 30 cents and Ether, ETHUSD, +0.03%  the second-largest digital currency, was bucking the trend, rising 0.8% to $132.80

Bitcoin futures closed out Tuesday in the green. The Cboe April contract XBTJ9, +0.78%  gained 0.8% to $3,900, while the CME March contract BTCH9, +0.13%  added 0.3% to $3,905.

Read: Wall Street embraced bitcoin as the next big thing, but crypto slumped and the party got postponed

Providing critical information for the U.S. trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.

RECENT NEWS

The Penny Drops: Understanding The Complex World Of Small Stock Machinations

Micro-cap stocks, often overlooked by mainstream investors, have recently garnered significant attention due to rising c... Read more

Current Economic Indicators And Consumer Behavior

Consumer spending is a crucial driver of economic growth, accounting for a significant portion of the US GDP. Recently, ... Read more

Skepticism Surrounds Trump's Dollar Devaluation Proposal

Investors and analysts remain skeptical of former President Trump's dollar devaluation plan, citing tax cuts and tariffs... Read more

Financial Markets In Flux After Biden's Exit From Presidential Race

Re-evaluation of ‘Trump trades’ leads to market volatility and strategic shifts.The unexpected withdrawal of Joe Bid... Read more

British Pound Poised For Continued Gains As Wall Street Banks Increase Bets

The British pound is poised for continued gains, with Wall Street banks increasing their bets on sterling's strength. Th... Read more

China's PBoC Cuts Short-Term Rates To Stimulate Economy

In a move to support economic growth, the People's Bank of China (PBoC) has cut its main short-term policy rate for the ... Read more