Bitcoin recovery won’t be easy
Bitcoin managed to stage a recovery on Monday, with the price reached June 12 highs marginally below the $6,800 area. However, despite the immediate downside pressure has partially eased, the coin could resume the drop as the overall picture still looks unconvincing. During the early hours on Tuesday, BTCUSD has been trading with a bias but keeps above $6,500.
The digital currency got an upside boost from the reports that New York’s Department of Financial Services granted Square a license, allowing users of the Cash app in the state to trade bitcoin . According to the app’s first quarter call, it has 7 million active users. Nevertheless, this is not a meaningful driver for the BTCUSD pair which remains within the downtrend since late 2017.
From the technical point of view, bitcoin has been trading above the key moving averages in the hourly charts, where the current picture looks neutral. Meanwhile, in the longer term timeframes, the background still looks as long as the price is below the key $7,800 threshold. The cryptocurrency now needs to get back above the $7,000 figure to show a more sustainable rebound. On the downside, the immediate support lies around $6,400.