Bitcoin (BTC), the largest cryptocurrency by market capitalization, is showing signs of a tentative recovery after experiencing a big selloff over the past week.
The price of Bitcoin is hovering just below $113,000 U.S., having risen back above the key support level of $110,000 U.S.
BTC had dropped as low as $109,000 U.S. to start the trading week, raising concerns among crypto traders and analysts of a support breakdown that could see the selling accelerate.
However, Bitcoin appears to have regained its footing and is once again on the rise and back above the $110,000 U.S. level that crypto bulls watch closely.
The current recovery comes after Bitcoin endured a sharp decline after touching an all-time high of just over $124,000 U.S. in mid-August.
The slide in the biggest cryptocurrency has occurred alongside a pullback in other digital assets such as Ethereum (ETH) and XRP (XRP).
Analysts say crypto selling has ramped up as retail investors turn more risk averse and institutional investors take profits after a big rise in prices this summer.
There is a debate online and in chatrooms about whether the current decline in crypto is due to a healthy period of consolidation or signs of a more troublesome bear market in digital assets.
Some analysts say they expect interest in Bitcoin and other crypto to be reignited in September after the Labour Day weekend as investors return from summer vacation and reengage.
BTC is now up 21% on the year.
