Bitcoin managed to stage a recovery on Monday, with the price reaching June 12 highs marginally below the $6,800 area. However, despite the immediate downside pressure having partially eased, the coin could resume the drop as the overall picture still looks unconvincing. During the early hours on Tuesday, BTC/USD has been trading with a bearish 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 (NYSE:SQ) a license, allowing users of the Cash app in the state to trade bitcoin. According to the app’s first quarter earnings call, it has 7 million active users. Nevertheless, this is not a meaningful driver for the BTC/USD 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 time-frames, the background still looks bearish 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.