Bitcoin (BTC) could defend the immediate support of $6,000 in the short-term as the recent sell-off is looking overstretched on the technical charts.
The world's largest cryptocurrency by market capitalization fell for the third straight day on Wednesday to hit a three-week low of $6,121 on Bitfinex and was last seen trading at $6,320 – down 26 percent from the July 24 high of $8,507.
Notably, almost half of the 26 percent drop witnessed over the last two weeks has happened in the last 48 hours, likely indicating investors have been left unimpressed by the US Securities and Exchange Commission's (SEC's) decision to postpone any action regarding a bitcoin ETF proposal from VanEck SolidX Bitcoin Trust.
So, there is little likelihood of the bulls making a strong comeback in the short-term. Even so, the bears look to be reaching a point of exhaustion, having engineered a near 90-degree sell-off in the last two weeks.
The technical charts are also indicating the bitcoin market is nearing oversold conditions. As a result, we could be in for a bout of consolidation or a minor corrective rally.