On Friday, Bitcoin (BTC) hit a two-week high as crypto traders felt more optimistic that the market had steadied following a recent collapse, while some analysts warned of the prospect of a short squeeze.
The price of bitcoin has risen 8.9% in the last 24 hours to over $40,219, breaking above the $40,000 psychological barrier for the first time since January 22.
The most valuable cryptocurrency is still a long way from its all-time high of roughly $69,000, which it attained in December.
A senior trader at Crypto Finance AG, Daniel Kukan said, “Several attacks on the downside have not been successful anymore as the risk has been taken out.”
On the upside, Daniel Kukan stated his next price goal is around $42,000 to $43,000. Market support, according to him, is $33,000 – or $28,000 in the worst-case scenario, “which we have not touched.”
After sustaining support above the $35,000 to $37,000 zone on an intraday basis, bitcoin has burst through the top of its weekly price range.
After the US Labor Department revealed unexpectedly robust employment growth in January, as well as significant higher adjustments to previously published projections for 2021, bitcoin fell temporarily.
In theory, such a report would be detrimental for bitcoin since the Federal Reserve would have to raise interest rates more aggressively to prevent the labor market from overheating. In general, tighter monetary policy has lowered the price of bitcoin.
“In spite of today’s move from a technical perspective I don’t think we can start saying anything definitive until at least a definitive breakout beyond” $40,000 to $41,000, according to Stephane Ouellette, chief executive and co-founder of institutional crypto-platform FRNT Financial.
According to Hayden Hughes, chief executive officer at Alpha Impact, a trading social media platform, “Although there were concerns about accelerating monetary policy, there is now a sense among many capital markets that a 50 basis point rate hike is priced in given recent movements in equity markets.” Not forgetting to attribute the improved attitude to the restitution of $320 million from the Wormhole breach and oversold technical levels.
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