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- Bitcoin climbed above $ 38,000 for the third time in a week on Friday to maintain key support levels.
- The cryptocurrency has been rising steadily, having peaked at nearly $ 42,000 last month and declining shortly afterwards.
- Indicators suggest the coin has room to run and will make another run at the $ 40,000 level, an analyst said.
- See Bitcoin trading live here.
Bitcoin rose to $ 38,346.61 on Friday as the world’s most popular cryptocurrency faced the latest hurdle on its way back to record highs.
The digital token made a strong comeback over the past week as retail investor demand fueled new inflows. That dynamic is now facing an important test as Bitcoin struggles to stay above the $ 38,000 resistance level. Bitcoin surged above the threshold on Thursday before falling back below $ 37,000 later in the day.
The token traded 1% higher year over year, trading at $ 38,065.03 at 10:10 a.m. ET on Friday. Although Bitcoin fell from its high in early January, it is still up 31% since the start of the year.
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Bitcoin jumped to an all-time high of nearly $ 42,000 earlier in the year before profit-taking brought prices back to earth. The token traded in a narrow range of around $ 32,000 before moving higher until the end of last month.
Friday’s surge marks the third time in the past week that Bitcoin has risen above the $ 38,000 level. The token traded above the threshold on January 29th before giving up support and dropping to $ 33,000. Thursday’s attempt to break through the ceiling resulted in a less dire break-in.
Some technical signals suggest that the token could finally hit a new price floor. Bitcoin’s Relative Strength Index – a measure of the dynamics over the past 14 days – is just above 60. Readings above 70 indicate that the cryptocurrency is overbought. Measurements of trend swings also suggest that Friday’s jump could finally take Bitcoin to new levels.
The broader cryptocurrency market has also grown stronger thanks to the vague support of Elon Musk, CEO of Tesla. The richest person in the world praised Dogecoin in a spate of Thursday tweets, once calling it “the people’s crypto”. The news sparked a positive trend in several cryptocurrencies.
The positive momentum and new demand put Bitcoin on track for another run at the $ 40,000 level, said Ed Moya, senior market analyst at Oanda, on Thursday.
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