Bitcoin is having difficulty recovering amid subdued trading action, remains above $4000

Bitcoin is struggling to make a decisive move in either direction on Tuesday as uncertainty surrounding China's ban persists. As of writing, the BTC/USD pair was trading at $4133, losing 1.6% on the day.

Although the pair was able to secure some modest gains and stay in the positive area for the majority of the day, recent comments from JPMorgan CEO Jamie Dimon brought a fresh selling wave. Speaking at a Barclays Conference on Tuesday, Dimon said that bitcoin was a fraud that would eventually blow up and further added that he would fire any trader that transacted bitcoin for being stupid, as reported by Bloomberg.

On the other hand, however, Forbes author Naeem Aslam in a recent article argued that sanctions on North Korea could boost the demand for the digital currency saying "bitcoin, despite its volatility, has taken a prominent place when it comes to a risk-off trade during the substantive volatility time in the market."

Nevertheless, investors seem to be taking a break from the currency at least until the fog clears and the next direction of the BTC/USD pair is likely to be determined by China's decision on whether or not to ban trading of virtual currencies on domestic exchanges, 

Technical levels to consider:

$4430 (20-DMA) remains as the initial hurdle ahead of $4690 (Sep. 8 high) and $4970 (all-time high). On the downside, supports could be encountered at  $4000 (psychological level), $3900 (Sep. 5 low) and $3600 (Aug. 22 low).

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 securities. 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 Forex 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.