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Optimism from bulls is the leading sentiment of the day after Bitcoins (BTC) price made its way back toward thepsychologically important $40,000 level.

In addition to the reversal from this weeks local low at $37,500, Gary Gensler, the Chair of the United States Securities and Exchange Commission, issuedpositive comments about the crypto industry and reaffirmed the goal of ironing out fraud in the ecosystem.

Now that Bitcoins price appears to be back on the path to $40,000, heres what analysts and traders are saying about the top cryptocurrency.

To many traders, $40,000 is a pivotal level for Bitcoin, and how the price performs from here could determine whether the market enters another bullish phase or simply rejects to retest underlying support levels again.

As pointed out by the pseudonymous crypto Twitter analyst Rekt Capital, 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 fail to hold this level, the 50-day EMA at $26,723 could provide the next support zone. Failure to hold above this level increases thepossibility that BTC could drift back toward its July lows.

Rekt Captial said:

The importance of a strong BTC close above $40,000 was also highlighted by pseudonymous Twitter analyst Fomocap, who posted the following tweet that identifies the $40,400 price point as a key area to watch.

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

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

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

The indecisiveness that controlled Bitcoins price throughout July still extends into August, meaning traders will tread lightly even if the $40,000 level is reclaimed.

As things currently stand, a more decisive breakout that pulls Bitcoin price through the $40,000$43,000 resistance cluster is needed before traders can gain the confidence chase after this years all-time highs.

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

Original post:
Analysts identify $40K as the make-or-break level for Bitcoin price - Cointelegraph