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

Eren Sengezer FXStreet

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).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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