NEW YORK: Bitcoin hit its highest level since mid-May and continues to build momentum.
The largest cryptocurrency gained Sunday for an 11th day in the past 12 and traded up to US$42,606 (RM179,797), its highest since May 18.
Market watchers have pointed to US$40,000 (RM168,800) 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. “Of course, it now needs to stabilise here -- and above the high from May 20 would be further confirmation.”
Bitcoin traded as high as US$42,541 (RM179,523) on May 20. Bitcoin, which for weeks trended downward from its mid-April record near US$65,000 (RM274,300), 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 job postings by Amazon.com Inc. and resulting speculation helped as well.
Edward Moya, senior market analyst for North America at Oanda Corp, a offered a note of caution about the recent run.
“Retail interest is strong, while institutional interest is somewhat lagging and needing fresh endorsements,” he said in a note. — Bloomberg
“Bitcoin volatility might remain elevated over the weekend and traders should not be surprised if a spike occurs toward the US$42,000 (RM177,240) level during some illiquid times.”
“However, breaking above US$50,000 (RM211,000) will take some doing for bitcoin. Only a conclusive break above this would attract fresh flows and signal a change in the broader direction for the market,” Pankaj Balani, chief executive officer of crypto derivatives exchange Delta Exchange, said in a note July 27. — Bloomberg