Bitcoin loses more than $100 on day, remains above $4000

Following yesterday's subdued trading action, the BTC/USD pair came under a modest selling pressure on Tuesday and was last seen trading at $4268, losing 3%, or $130, on the day.

The pair's drop on Tuesday seems to be caused by the introduction of a new cryptocurrency. "Bithumb, one of the world’s biggest exchanges for cryptocurrencies such as Bitcoin and Ethereum, added support for a new cryptocurrency on Tuesday," Fortune magazine reported on its official website.

Nevertheless, today's price action seems to be a technical correction of last week's rise and doesn't suggest a deep sell-off for now. In fact, some experts still think that the digital currency has more potential on the upside. "Throughout the year we've been predicting the bitcoin price will surpass $5,000 and creep closer to $6,000 by year's end. That prediction is looking more in line with market sentiment these days," Thomas Glucksmann, head of APAC business development at Gatecoin, a cryptocurrency exchange, told CNBC by email.

Technical outlook

The RSI indicator on the daily graph turned south a little above the 50 handle, suggesting that the bullish momentum is losing strength. The pair could face the first technical resistance at $4480 (Monday's high) before $4700 (Sep. 8 high) and $5000 (psychological level). On the downside, supports align at $4000 (psychological level), $3650 (Sep. 25 low), $3435 (100-DMA).