• Bitcoin price is sprouting above $20,000 following a symmetrical triangle breakout.
  • Fed Chair Jerome Powell reckons that a lot of thought must be put into regulating crypto activities.
  • Crypto assets call for the same risk and regulation to level the playing field and avert downsides of regulatory evasion.
  • Bitcoin price could tag $20,900 if investors shun early profit booking for a long-term bullish outlook.

Bitcoin price is exploring highs above $20,000 on Tuesday after holding support at $18,800 for nearly four days. Green sprouts are noticeable across the market, led by Uniswap price’s 16.70% move to $6.60. Ethereum price is trading close to $1,400 while XRP has only managed a 1.30% swing to $0.47.

The cryptocurrency market’s bullish stint coincides with Federal Reserve Chair Jerome Powell’s speech “on opportunities and challenges of the tokenization of finance,” at the Louvre Museum in Paris, France.

Cryptocurrency is a new tech that needs proper regulation – Jerome Powell

Central banks globally have been tested by fire this year amid the impact of the COVID-19 pandemic, dynamic geopolitics and the Ukraine-Russia war. While addressing attendees at the Paris conference, Powell said that the normalization of monetary policy had laid bare key structural issues within the decentralized finance (DeFi) system.

The US Fed chair added that governments across the board need to carefully and thoughtfully approach the regulation of the DeFi system. In other words, proper regulations should be implemented to address the new technology.

"Should be same risk, same regulation for crypto assets,"Jerome Powell.

Regulation is one way to level the playing field and avoid the dangers of regulatory evasion. Powell reckoned that a lot of work needs to be done on both traditional and digital assets – especially regarding stablecoins. The issuers of stablecoins have shown interest in reaching the broader public. However, this raises the question of whether there is enough regulatory oversight for broader use.

Bitcoin price starts rewarding patient investors

Cryptocurrency investors have this year been forced to grow a thick skin to endure frequent pullbacks and little to no progress to the upside. The largest cryptocurrency recently bled to $18,200 before rebounding to $19,500.

However, profit taking, investor skepticism, and external forces attributed to inflation and geopolitical shifts pushed BTC price to $18,800. On the bright side, Bitcoin price finally made good of a potential symmetrical triangle breakout, climbing the ladder to $20,350.

BTC/USD four-hour chart

BTC/USD four-hour chart

It could be a big boost if higher support, preferably at the 200-day SMA (Simple Moving Average – purple), held its ground. The OBV (On Balance Volume) affirms that bulls have the upper hand and could easily propel Bitcoin price to complete the 9.54% triangle breakout to $20,900.

On the other hand, the risk of pulling back is still apparent amid overbought conditions, as shown by the Stochastic oscillator. Short-term traders should consider taking profits at $20,900 to avoid a possible trend correction to $19,500 and $18,800, respectively.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content

Recommended Content

Editors’ Picks

FTX’s ex-CEO Sam Bankman-Fried confesses failure of oversight, says “unknowingly commingled funds”

FTX’s ex-CEO Sam Bankman-Fried confesses failure of oversight, says “unknowingly commingled funds”

FTX’s founder claimed that he was unaware of Alameda’s position, which led to the subsequent collapse. Sam Bankman-Fried had earlier blamed FTX’s downfall on “messy accounting” that emanated during the Terra-Luna collapse.

More Cryptocurrencies news

Avalanche price remains submerged, but bulls can come out on top if this happens

Avalanche price remains submerged, but bulls can come out on top if this happens

Avalanche price may be setting up for one more decline targeting the halfway point of the 2020-2021 bull run. Despite this fact, the bulls are showing efforts to refute the bearish stronghold. The $14 price zone is crucial for defining the next directional rally.

More Avalanche news

Hedera Hashgraph (HBAR) Price Prediction: Countertrend bulls seem poised for more gains

Hedera Hashgraph (HBAR) Price Prediction: Countertrend bulls seem poised for more gains

Hedera Hashgraph price shows potential to rally a bit higher before the bears flex their power again. Based on the confounding technicals, HBAR could rise by 12%. Hedera Hashgraph price has rallied by 18% on the month.

More Hedera news

Why the Ethereum price could rally back to $1,375

Why the Ethereum price could rally back to $1,375

Ethereum price has investors watching closely as the recent recovery could be the start of a much larger move. As the bulls trot higher, subtle signs suggest the ETH price could continue to rally. A breach below $1,214 would make void ETH's bullish potential.

More Ethereum news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis