Bitcoin hits highs of $ 39,000 as SEC Chairman comments 2% increase in BTC price

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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.

1 hour BTC / USD candle chart (Bitstamp). Source: TradingViewGensler bullish on the potential of Bitcoins

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 a top-down chain in place 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 helped reassure markets, while CNBC’s move on Wednesday reinforced Gensler’s desire to eliminate fraud while still allowing investors access to what he called speculative Bitcoin and altcoins assets. .

This innovation from Satoshi Nakamoto, if it is to reach its potential, must fit into public policy frameworks, he told the network, including distinguishing Bitcoin from other cryptocurrencies.

Genslers’ 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 remained at $ 36,000 on the main Binance exchange on the day that level has yet to see a real test after Wednesday’s sudden reversal.

BTC / USD (Binance) buy and sell levels as of August 4. Source: Hardware Indicators / Twitter Moving averages are the biggest concern for traders

Nonetheless, it was clear that the price action on this day was attracting attention.

Related: 3 Reasons Bitcoin May Suddenly Explode To A New Range Of $ 50,000- $ 65,000

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 rebound is just a rally of relief to turn the 200-day EMA into resistance …

Then $ BTC could retreat to the 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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