Bitcoin was trading below the key $10,000 level for much of Wednesday after a string of negative news reports subjected the whole array of crytocurrencies to losses.
While Facebook said it was to ban cryptocurrency-related advertising content, South Korea was implementing new rules preventing the use of anonymous trading accounts.
South Korea not banning bitcoin
However, the country's finance minister said on Wednesday that there was no intention to ban or suppress cryptocurrency trading.
"Regulating exchanges is the government's immediate task," he said.
This news helped take the edge off earlier losses, and by the time equity markets were closing in London, bitcoin was trading back close to the $10,000 level.
Omkar Godbole at Coindesk offered some technical analysis of recent losses.
"The 15% drop from the weekend high of $11,942.25 signals a continuation of the series of lower highs on the price chart, suggesting the bears remain in control," he said.
He added: "That said, the quick rebound from $9,627.89 to $10,000 adds credence to the argument that the cryptocurrency could be forming a base around $10,000."
Indeed bitcoin appears to have been rangebound for the last couple of weeks - finding support around the $10,000 level, but meeting resistance close to the $12,000 level.
Godbole suggested a bullish scenario: "A daily close above $11,690 would turn the tables in favor of the bulls."
At just after 16.30 in London the main cryptocurrencies remained lower on the Bitstamp exchange:
- Bitcoin was down 3.9% at $10,014
- Ethereum was 1.91% lower at $1,101.30
- Ripple shed 5.73% to $1.094
- Litecoin was down 6.13% at $158.76