The momentum surrounding Bitcoin continued as it reached its highest level since May. The cryptocurrency achieved gains for the tenth consecutive day, trading at $42,390 on Saturday, which is the highest since May 20. Market observers pointed to $40,000 as a significant turning point for the largest cryptocurrency. Jonathan Cheesman, Director of Sales and Institutional Sales at the cryptocurrency exchange FTX, noted in a memo on Saturday: "Such movement certainly indicates some support resulting from inflows; the coin now needs to stabilize at this level, and an affirmation above the May 20 level would provide additional confirmation."
Bitcoin had experienced a downward trend for several weeks, dropping from its mid-April peak of $65,000, but it spent a week recovering some of its losses, supported by comments from Elon Musk and Cathie Wood that helped pull it out of the downward trend, along with Amazon's job announcements for cryptocurrency-related positions and speculation activities.
However, institutional interest has declined. Edward Moya, Senior Market Analyst in North America, issued a cautionary note regarding price movements, stating in a memo on Friday: "Individual interest is strong, while institutional interest has somewhat waned, as it requires new confirmations. Bitcoin's volatility may remain high over the weekend, and traders should not be surprised if a rise toward $42,000 occurs during periods of low liquidity."
Despite this, the cryptocurrency has once again risen this week above its 50-day and 100-day moving averages, approaching the 200-day moving average at $44,680. Pankaj Balani, CEO of the cryptocurrency exchange Delta Exchange, remarked in a memo on Tuesday: "It wouldn't be surprising if we see Bitcoin expand its trading range from $30,000 upward toward $42,000, aiming to reach $45,000; however, breaking the $50,000 level will require some effort from Bitcoin." He added: "A breakout above $50,000 would attract new inflows and signal a change in the broader market trend."
