Bitcoin (BTC) hit 24-hour highs afterward on Wednesday every bit fresh comments from the U.s. regulatory sphere boosted flagging toll action.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Gensler bullish on Bitcoin'southward "potential"

Information from Cointelegraph Markets Pro and TradingView confirmed local highs to a higher place $39,000 on Bitstamp, with BTC/USD jumping more than than ii% in an hr.

The move, which ended a descending channel in place overnight, followed a mainstream media appearance by Gary Gensler, the new Chair of the U.s.a. Securities and Substitution Committee.

A seasoned lecturer at the Massachusetts Institute of Technology on cryptocurrency, amidst other topics, Gensler had been welcomed by the industry every bit a potential goad toward favorable regulation by Washington.

A speech Tuesday had gone some style to reassuring markets, while Wednesday's CNBC stint reinforced Gensler'due south desire to iron out fraud while allowing investors access to what he called "speculative" avails — Bitcoin and altcoins.

"This innovation — Satoshi Nakamoto'due south innovation — if it is going to come across its potential, needs to come within public policy frameworks," he told the network, notably singling out Bitcoin in particular over other cryptocurrencies.

Gensler's comments had been a potential source of business organization for traders as the week began, this due at a timely juncture, as Bitcoin was already coming downwards from a rapid ascent to multi-calendar week highs above $42,500.

Solid support remained at $36,000 on major exchange Binance on the 24-hour interval — this level yet to see a true exam after Wednesday's sudden turnaround.

BTC/USD buy and sell levels (Binance) as of Aug. 4. Source: Material Indicators/Twitter

Moving averages are trader's "biggest concern"

Nonetheless, it was clear that toll activeness on the 24-hour interval was attracting attention.

Related: three reasons why Bitcoin tin can of a sudden explode to a new $50K–$65K range

For trader and analyst Rekt Capital, potential strength here could allay fears that Bitcoin will end up flipping its 200-day exponential moving boilerplate to resistance for the long term.

The 200EMA, currently at effectually $38,300, lay below spot price after the Gensler episode.

In comments to Cointelegraph, fellow analyst Filbfilb added that Bitcoin had also still to repossess the 100-day and xx-week moving averages.

"This is my biggest concern," he warned.