On the one hand, the pair’s inability to stage a convincing and sustainable ascent deters long term buyers who start to doubt that the asset could get back to its previous highs, registered in mid-December. The virtual currency still looks unattractive for bulls and draws sellers on rallies.
On the other hand, bitcoin has been steady in the $6,000-$7,000 range over the past few weeks, which highlights some stabilization of the market. In time, lower coupled with higher security levels could attract institutional investors to the industry. In the short term, BTCUSD needs to regain the $6,400 area to resume the rebound and get back above the 10-DMA.