Bitcoin Bulls Struggle Above $38,500

Fresh comments from the U.S. regulatory sphere have boosted Bitcoin‘s price action as it broke above $38,000 yesterday.

The FTX exchange reported local highs above $38,500 for the day, while the pioneer crypto jumped 3%.

Satoshi Nakamoto’s innovation, the U.S SEC chair, Gary Gensler highlighted, must be integrated into public policy frameworks if it is to reach its full potential. He distinguished Bitcoin from other crypto assets, notably addressing it first.

This move ended a downward trend overnight following Gensler’s recent television interview with the mainstream media.

Despite this, market sentiments remain fairly neutral in the crypto space. There has been a decrease in aggressive trading among traders amid rising geopolitical uncertainty partly driven by COVID-19.

In addition to a recent speech, Gensler was on CNBC this week to reiterate what he had said some days ago and to reassure markets that fraud will be ironed out while allowing investors to have a fair shot at “speculative” assets.

In the early hours of the week, traders were concerned by the powerful financial regulator’s comments, particularly since Bitcoin was already coming down from a rapid ascent to multi-week highs over $42,500.

Since late May, the flagship cryptocurrency has traded mainly between $30,000 and $42,000. Although the price has declined in May and June, it has found support around the $30,000 level.

Bitcoin could hit the low $25,000 level if these important support levels come under attack.

Profit-taking by investors amid weekly closings could be partly to blame for the retracement in the world’s most popular crypto from two-month highs.

Accordingly, the pledge by the People’s Bank of China (PBOC) to maintain draconian controls on cryptocurrency trading and speculation may also explain the pullback in the world’s most popular digital asset.