The recovery rally for Bitcoin price finds new fuel, but will it sustain?
|- Bitcoin price experiences bearish rejection at the $20,000 level.
- Binance Labs vows to assist the crypto community by reducing fees on their platform.
- Invalidation of the bullish macro count remains $13,880.
Bitcoin price is beginning to pull market sentiment from the grave ashes. Still, investors should approach the peer-to-peer digital currency with a cautious dollar-cost averaging approach, as bearish unpredictability is still a factor.
Bitcoin price remains in a critical spot
Bitcoin price is facing some turbulence to start Wednesday's trading session. The bulls have been rejected at the upper $20,000 area, bringing two kinds of traders in the market, the hopeful bulls and confident bears.
Binance Labs, notorious for their exchange service (catering to over 28.5 million crypto customers to date), is helping to fuel bullish optimism as the company has vowed to reduce fees for anyone purchasing Bitcoin through their platform.
From a technical perspective, the Bitcoin price will need much more assistance. The bears have produced an expected pullback that has not yet breached the June 19 low at $17,592. A break of the low could pour in an influx of bearish momentum, with price targets at the $16,700 level. Bears looking to enter the market should be aware of the recent Relative Strength Index divergence, which accompanied the mid $17,000 low, as a whipsawed short squeeze event could occur upon entry.
BTC/USDT 8-Hour Chart
Bitcoin price currently trades at $19,870. The bulls have not yet been able to hurdle the 200-Week Moving Average. The most reliable bullish invalidation point will be $13,880, as mentioned in previous articles. If $13,880 were to get breached, the entire macro count would be in jeopardy. The bears could fall sub $4,000, resulting in a 90% decrease from the current Bitcoin price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.