Home Industry Finance Bitcoin rallies past key $40,000 level to highest since mid-May The cryptocurrency has, this week, risen back above its 50- and 100-day moving averages by Bloomberg August 1, 2021 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 on Saturday. “Of course, it now needs to stabilise 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 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 on 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 on 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.” Tags Bitcoin Cathie Wood cryptocurrency Delta Exchange Elon Musk 0 Comments You might also like Bitcoin ‘halving’ has taken place, CoinGecko says What is Bitcoin halving and when will it take place? Binance secures full VASP crypto licence in Dubai Bitcoin drops 7.9% to $61,842