The Bitcoin price is currently the topic of discussion after Binance’s FUD. A recent unprecedented increase of transaction fees has caused a decline in sentiment for the leading digital currency. Investors and enthusiasts are looking forward to a possible rebound as the digital currency just reached an important support level.

Binance FUD brings down BTC market

Participants in the market attribute the problem to the’spamming of the Bitcoin network’ by mass transactions. Binance, the largest cryptocurrency exchange in the world, repeatedly suspended BTC withdrawals, causing the problem to worsen.

Binance cited ‘congestion,’ as the cause for these interruptions. This created a backlog in withdrawal requests and intensified the current apprehensive sentiment on the market.

Whales and arbitrage desks prefer Bitcoin quarterly futures. These fixed-month contracts are usually marked up a little more than spot markets. This means that sellers want to be compensated for delaying settlement.

In a stable crypto market, BTC contracts on futures should have a premium of 5-to-10% annually. This is called contango and it’s not a phenomenon unique to the cryptomarket.

Bitcoin traders have been remarkably cautious over the last two weeks. There was no increase in demand for leveraged positions during the recent rally which peaked at $29850 on May 6. The BTC futures’ premium reached the lowest level it has been in two months after the 6.8% correction to $27.800.

Bitcoin’s futures have reached the lowest level. It is expected that long options will increase in the near future to profit from the drop in price.

BTC’s Rebound from $27.5K

In the past two weeks, Bitcoin’s price has been fluctuating within an 8.5% range. It oscillates between $27.250 and $29.550. The 40-day measurement of volatility has decreased to below 40%. BTC currently trades at $27.9K. This is a decrease of over 3.5% compared to yesterday’s price.

Bears are now trying to turn this critical level of support into resistance. Bitcoin has lost its crucial level of support at $28K. Bulls quickly recovered as BTC’s price rose after gaining support at $27.5K. Bitcoin’s daily price chart shows that it is near the EMA-50, indicating that bulls will continue to try and push the price higher than $28K.

The RSI line is still able to fall, which indicates that there could be some buying pressure on the chart. SMA-14 does not show any signs of falling below 52 despite the market’s bearish sentiment.

Bulls may gain confidence to open long positions if Bitcoin tests its final support level of $27,100. The asset will be pushed above $29K if it breaks above $28.3K.