Optimism from bulls is the leading sentiment of the day after Bitcoin's (BTC) cost made its manner back toward the psychologically important $twoscore,000 level.

In improver to the reversal from this week's local low at $37,500, Gary Gensler, the Chair of the United States Securities and Exchange Commission, issued positive comments most the crypto industry and reaffirmed the goal of ironing out fraud in the ecosystem.

BTC/USDT 4-hour chart. Source: TradingView

Now that Bitcoin's price appears to be dorsum on the path to $40,000, hither's what analysts and traders are saying almost the top cryptocurrency.

Traders are waiting for $forty,000 to flip from resistance to support

To many traders, $forty,000 is a pivotal level for Bitcoin, and how the price performs from here could decide whether the market place enters another bullish phase or simply rejects to retest underlying support levels once more.

Every bit pointed out by the pseudonymous crypto Twitter annotator Rekt Majuscule, the $40,000 price target is close to the 200-EMA, and it is crucial that Bitcoin secures a few closes above this moving average.

Should Bitcoin neglect to hold this level, the 50-day EMA at $26,723 could provide the next support zone. Failure to concord higher up this level increases the possibility that BTC could drift dorsum toward its July lows.

Rekt Captial said:

"If BTC isn't able to reclaim the 200-day EMA soon, it will flip back into a resistance and could decline cost to the mid-$xxx,000s."

Bitcoin is at a make-or-suspension stage

The importance of a potent BTC close above $twoscore,000 was also highlighted by pseudonymous Twitter analyst Fomocap, who posted the post-obit tweet that identifies the $forty,400 price point equally a fundamental surface area to watch.

According to Fomocap, Bitcoin needs to shut above $40,400 in guild to solidify the uptrend, and rejection at this level opens the door to a revisit of the $30,000 range.

Based on the nautical chart provided, the next levels of support below $37,000 are plant at $34,300 and $32,000.

Related : Panic selling is crypto investors' biggest mistake, new survey reveals

Traders will remain indecisive even if BTC hits $40,000

The indecisiveness that controlled Bitcoin'southward price throughout July however extends into August, meaning traders will tread lightly even if the $twoscore,000 level is reclaimed.

As things currently stand up, a more decisive breakout that pulls Bitcoin price through the $40,000–$43,000 resistance cluster is needed before traders can gain the confidence hunt after this year'due south all-time highs.

The views and opinions expressed here are solely those of the author and do not necessarily reverberate the views of Cointelegraph.com. Every investment and trading motility involves risk, y'all should conduct your own research when making a decision.