Bitcoin has risen to its highest level since mid-May and is continuing to build momentum.
The largest cryptocurrency rose for the 11th day in a row on Sunday, reaching $42,606, its highest level since May 18. Market observers have identified $40,000 as a critical turning point. As of 6:13 a.m. New York time on Sunday, it was up around 0.5 percent to $41,739 dollars.
In a note published Saturday, Jonathan Cheesman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX, stated, “A run like this obviously shows substantial flow backing.” “Of course, it now needs to stabilise here — and a break above the May 20 high would be confirmation.” On May 20, bitcoin reached a high of $42,541.
Bitcoin, which had been trending downward for weeks from its mid-April high near $65,000, has now spent more than a week regaining ground, thanks to positive comments from Elon Musk and Cathie Wood. Amazon.com Inc.'s job advertisements on digital assets and the accompanying speculation also helped.
Oanda Corp.'s chief market analyst for North America, Edward Moya, issued a warning regarding the current rally.
“Retail interest is great, but institutional interest is somewhat lagging and needing fresh endorsements,” he wrote in a Friday note. “Bitcoin volatility is likely to continue high throughout the weekend, and traders should not be surprised if a spike occurs toward the $42,000 level during some illiquid times.”
Still, the cryptocurrency has soared over its 50- and 100-day moving averages in the last week, with the 200-day moving average at around $44,700 in sight.
In a note dated July 27, Pankaj Balani, chief executive officer of crypto derivatives exchange Delta Exchange, said, “It won't be shocking to see Bitcoin widen the $30,000 to $42,000 trading range on the upside and target $45,000.”
“However, Bitcoin will have to work hard to break through $50,000. Only a decisive breach over $50,000 would attract new money and signal a shift in the market's overall direction.”
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