On Wednesday, the price of bitcoin gained by almost 10% towards the end the day above $8,000. This marked a more than $2,000 gain from when the currency touched a low of under $6,000 early this week.
Traders attributed the sudden rise in bitcoin and other cryptocurrencies, to a meeting by the United States’ Senate Banking Committee. During the meeting, officials from the Securities and Exchange Commission (SEC) and Commodities and Futures Trading Commission emphasized the need to regulate the industry without calling for a blanket ban.
During the meeting, the officials said that the treasury was in the process of bringing together several agencies to coordinate the industry.
To traders, this was a positive move because it went against other countries like China, which have moved to ban ICOs and other blockchain related products entirely.
As shown below, at the current price, bitcoin has retraced to the 61.8% Fibonacci level. Unless there is any major negative news, the price of bitcoin could try to test the $8720 level, which is an important Fibonacci level.
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