Bitcoin overview: BTC/USD recovers reluctantly from Wednesday’s lows

Bitcoin price made its way towards the middle of $3,400-$3,500 range. The first digital coin is changing hands at $3,445, gaining about 1.4% on a day-over-day basis. While the downside pressure subsided, the recovery is still fragile.

According to the statistical data revealed by a New York-based over-the-counter trading operator Genesis Global Trading, the volume of loans in digital currencies surpassed $1B at the end of 2018, which is twice as big as at the end of the third quarter.

The company experts also noted that the spike of interest correlated with the time when Bitcoin breached significant support.

“On Nov. 14, the price of BTC moved 16% in a single day, which jump-started a period of increased loan originations as short sellers piled on with unprecedented size. Many long-short hedge funds viewed breaking the $6,000 price floor as an accelerator through $5,000 and into the $4,000 range,” the company commented.

Traders borrowed money to make short bets, in other words, they sold with the aim to repurchase the cryptocurrency when it gets cheaper.

Bitcoin remains the most popular asset in the company’s portfolio with a share of 74.5%.

Looking technically, BTC/USD stays above the critical support level $3,400. If it is cleared, the sell-off may be extended towards the next barrier at $3,200 followed by $3,127, which is the lowest level of 2018. On the upside, we need a sustainable move above $3,500 to get a chance for an extended recovery with the next focus on $3,600 and $3.665 (DMA50).

BTC/USD, a daily chart