(Bloomberg) — Bitcoin hit its highest level since mid-May and continues to build momentum.
The largest cryptocurrency is gaining for a 10th day in the past 11 and traded up to $42,390 on Saturday, its highest level since May 20. Market watchers have pointed to $40,000 as an important inflection point.
“A run like this certainly suggests some flow backing,” said Jonathan Cheesman, head of over-the-counter and institutional sales at crypto derivatives exchange FTX, in a note Saturday. “Of course, it now needs to stabilize here — and above the high from May 20 would be further confirmation.”
Bitcoin, which for weeks trended downward from its mid-April record near $65,000, has now spent more than a week building back as supportive comments from Elon Musk and Cathie Wood helped bump it out of a declining trend. Digital-asset-related jobs postings by Amazon.com Inc. and resulting speculation helped as well.
Oanda Corp. senior market analyst for North America Edward Moya offered a note of caution about the price moves.
“Retail interest is strong, while institutional interest is somewhat lagging and needing fresh endorsements,” he said in a note Friday. “Bitcoin volatility might remain elevated over 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 this week risen back above its 50- and 100-day moving averages, with the 200-day at $44,680 in sight.
“It won’t be surprising to see Bitcoin expand the $30,000 to $42,000 trading range on the upside and attempt $45,000,” said Pankaj Balani, chief executive officer of crypto derivatives exchange Delta Exchange, in a note Tuesday. “However, breaking above $50,000 will take some doing for Bitcoin. Only a conclusive break above $50,000 would attract fresh flows and signal a change in the broader direction for the market.”