Bitcoin climbed almost 9% on Wednesday to its highest level since August as concerns of a US regulatory crackdown faded.
According to CoinDesk data, the price of the largest cryptocurrency peaked at $24,364 on Wednesday. From its all-time high of $70,000 in November 2021, it is still down 65%.
Bitcoin Price Remains At Record High
After the collapse of several big crypto companies in 2018, U.S. officials have increased their regulation of the crypto industry.
Edward Moya, an analyst at Oanda, speculated that Wednesday’s cryptocurrency gain may have been the result of a small sigh of relief when stablecoin issuer Circle rejected claims that the SEC had issued the business a Wells notice regarding its dollar-pegged stablecoins.
Some traders are still optimistic that regulation won’t crush stablecoins, and that might imply the worst of the crypto winter is over, Moya wrote in an email to MarketWatch on Wednesday.
Another stablecoin issuer, Paxos, reported on Monday that it received a Wells notice from the SEC on February 3. The notice stated that the SEC is considering proposing an action alleging that Paxos failed to register BUSD, a stablecoin produced by Paxos and labeled as a security by the largest cryptocurrency exchange in the world, Binance.
Wednesday ended with gains for U.S. markets after a volatile session. The Dow Jones Industrial Average gained approximately 39 points, or 0.1%, while the Nasdaq Composite rose 0.9% and the S&P 500 increased 0.3%.
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BTC Must Overcome Challenging Resistance Level
Bitcoin’s (BTC/USD) price gained significant traction on Wednesday as the digital currency reached a new high for 2023. Granted, 2023 is just six weeks old, and the present bull run appears to be rather modest on a one-year chart.
First, let’s discuss our current situation. BTC surpassed $24,000 as part of one of the most significant daily advances in months. Earlier today, Invezz reported on Bitcoin’s high momentum, and as is common in the crypto industry, an item can become obsolete and useless within hours.
This causes me the most concern. The 200-day moving average is one of my most reliable and preferred indicators. As long as Bitcoin trades below the 200-day moving average, bears retain power. A break above eliminates all possibilities. However, we must first get there, which will not be simple.
The 200-day moving average also nearly aligns with critical resistance levels and last summer’s highs, when Bitcoin appeared ready for a rebound only to be greeted by severe selling pressure.
Several traders and analysts on Twitter appear to share the same opinion, and with good reason. Perhaps call it cautious optimism. The net unrealized profit of all Bitcoins in circulation was just $2,500 five days ago.
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