Bitcoin Faces Drop Towards $3K After Brief Price Bounce

Bitcoin still has the potential to drop towards $3,000, despite a minor bounce from 15-month lows seen on Friday.

The ensuing corrective bounce seems to have run out of steam, as bitcoin is currently trading at $3,470 on Bitstamp - down 4 percent from yesterday's high of $3,633.

Further, BTC has depreciated close to 47 percent in the last month, forming record oversold conditions.

BTC is struggling to post a notable price bounce, which indicates bearish sentiment is still strong.

Notably, the 3-day chart, which can offer a better picture of the broader market trend than the daily and intra-day charts, is indicating room for a drop below the psychological support of $3,000.

Over on the 4-hour chart, BTC is struggling to cut through the descending trendline hurdle, currently at $3,540.

BTC may have a tough time clearing the immediate resistance at $3,540.

View BTC risks falling to $2,972 in the near-term, according to the 3-day chart.

The bearish outlook would only be invalidated if the descending 10-candle MA on the 3-day chart, currently at $4,250, is scaled.

Bitcoin image via Shutterstock; charts by Trading View.