Bitcoin price prediction ahead of SEC’s Gary Gensler testimony
The Bitcoin price is holding steady ahead of the closely-watched American consumer price index (CPI) data and speech by Gary Gensler. The BTC coin is trading at $46,000, which is slightly above this week’s low of $43,000.
Gary Gensler testimony
The key catalyst for the Bitcoin price will be a speech by Gary Gensler, the head of the Securities and Exchange Commission (SEC). He will testify before the Senate Banking Committee, where he will be asked about several issues including cryptocurrencies, payment for order flow (PFOF), and climate change.
In his prepared statement, Gensler said that the SEC was working with other regulators like the Commodities and Futures Trading Commission (CFTC) to come up with regulations in the industry. He also said that the regulators had invited cryptocurrency participants to share ideas. He wrote:
“I am technology-neutral. I think that this technology has been and can continue to be a catalyst for change, but technologies don’t last long if they stay outside of the regulatory framework.”
In the testimony, he will likely be asked several questions by Senator Elizabeth Warren, the Massachusetts Senator. The former professor has been relatively consistent in calling for tougher regulations in a bid to protect consumers.
The Gary Gensler’s testimony comes a day after scammers pushed the Litecoin price by more than 30%. The scammers published a press release saying that the Litecoin Foundation had partnered with Walmart, the biggest retailer in the United States. Such news would have been positive for Litecoin and other cryptocurrencies like Bitcoin.
The Bitcoin price is also holding steady ahead of the latest American Consumer Price Index (CPI) data. Economists believe that consumer inflation started easing in August. Precisely, they expect the data to show that the headline CPI rose by 5.3% in August, lower than the previous 5.4%. These numbers are important because they have an influence on the Federal Reserve.
Bitcoin price prediction
The daily chart shows that the Bitcoin price has been under pressure lately. It is trading at $46,000, where it has been in the past few days. A closer look shows that it has formed a bearish flag pattern, which is usually a bearish sign. It has also declined below the 25-day and 50-day moving averages (MA) while the MACD has been in a declining trend.
Therefore, while the overall trend is bullish, there is a possibility that it will retest the key support at $41,113, which was the highest level in June.