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Bitcoin (BTC) hit 24-hour highs later on Wednesday, as further commentary from the U.S. regulatory sphere spurred lower price action.
Gensler bullish on Bitcoin’s “potential”
Data from Cointelegraph Markets Pro and TradingView confirmed local highs above $ 39,000 on Bitstamp, with BTC / USD surging more than 2% in an hour.
The move, which ended an established top-down chain overnight, follows an appearance in mainstream media by Gary Gensler, the new chairman of the United States Securities and Exchange Commission.
A seasoned lecturer at the Massachusetts Institute of Technology on cryptocurrency, among other topics, Gensler had been greeted by the industry as a potential catalyst towards favorable Washington regulation.
A speech on Tuesday reassured markets, while CNBC’s move on Wednesday reinforced Gensler’s desire to eliminate fraud while still allowing investors access to what he called “speculative” assets – Bitcoin and altcoins.
“This innovation – Satoshi Nakamoto’s innovation – if it is to reach its potential, must be part of public policy frameworks,” he said. Recount the network, in particular by distinguishing Bitcoin in particular from other cryptocurrencies.
Gensler’s comments had been a potential source of concern for traders earlier in the week, this at an opportune time, as Bitcoin was already moving from a rapid rise to multi-week highs above. $ 42,500.
Strong support stayed at $ 36,000 on the major Binance exchange that day – that level has yet to be tested after Wednesday’s sudden reversal.
Moving averages are the “biggest concern” of traders
Nevertheless, it was clear that the price development on this day was attracting attention.
Related: 3 Reasons Bitcoin May Suddenly Explode Into New $ 50,000- $ 65,000 Range
For trader and analyst Rekt Capital, the potential strength here could allay fears that Bitcoin will eventually tip its 200-day exponential moving average into long-term resistance.
The 200EMA, currently at around $ 38,300, was below the spot price after the Gensler episode.
If this recent #BTC the rebound is just a rally of relief to turn the 200-day EMA back into resistance …
Then $ BTC could roll back to 50 day blue EMA
The 50 DEMA is another EMA that has historically proven to be useful in supporting uptrends in the bull market.#Crypto #Bitcoin pic.twitter.com/AWwP5jomvv
– Rekt Capital (@rektcapital) August 4, 2021
In comments to Cointelegraph, fellow analyst Filbfilb added that Bitcoin has yet to recover the 100-day and 20-week moving averages.
“This is my biggest concern,” he warned.
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