- Bitcoin price is in a potential recovery rally that could push it up to $22,600.
- Ethereum price recovery could only push it up by $1,650 due to multiple hurdles in the way.
- Ripple price is slowly in terms of recovery as it grapples with the $0.340 support floor.
Bitcoin price saw a massive sell-off over the last four days and has been trying to consolidate and recover since then. Some altcoins have been much better at recovery than Ethereum and Ripple. Regardless, a recovery rally seems plausible for the crypto markets.
The Australian government concurs that more than one million users have interacted with cryptocurrencies since 2018, as a result, it is taking a different approach to regulating the crypto space. In this effort, the Australian federal government is said to be creating a “token map” for the crypto assets. This move is to safeguard investors and protect them from themselves. Treasurer Jim Chalmers stated,
As it stands, the crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologies while safeguarding consumers.
While different countries are taking different approaches to regulating the crypto space, Bitcoin is looking ready for recovery before its next leg down.
Bitcoin price eyes recovery
Bitcoin price crashed 12% between August 18 and August 20 and set a swing low at $20,750, which is the fourth equal low formed since July 18. Although the recovery has pushed BTC to $21,500, the upside seems capped at $22,600.
A rejection at the aforementioned level followed by a sweep of the $20,750 seems plausible. Therefore, investors should be cautious of a premature recovery rally.
BTC/USD 4-hour chart
While things are looking on the fence for Bitcoin price, a breakdown of the $20,750 support level and flipping it into a resistance level will postpone the recovery rally. In such a case, BTC could crash as low as $17,578 to collect liquidity, resting below the swing lows formed between June 18 and July 13.