The price dipped Friday after the U.S. jobs report for January, but reversed as traders grew more confident that the downside is limited.
Bitcoin (BTC) jumped to a two-week high on Friday as crypto traders grew more confident that the market has stabilized following a recent slump and some analysts flagged the possibility of a short squeeze.
The bitcoin price rose 8.9% over the past 24 hours to about $40,219, pushing past the key psychological threshold of $40,000 for the first time since Jan. 22. The largest cryptocurrency remains well off its all-time high of around $69,000 reached in December.
“Several attacks on the downside have not been successful anymore as the risk has been taken out,” said Daniel Kukan, a senior trader at Crypto Finance AG.
Kukan said his next target for the price level on the upside is about $42,000 to $43,000. He sees market support at $33,000 – or $28,000 in the worst case, “which we have not touched.”
On an intraday basis, bitcoin has pierced above the top of its weeklong price range, after holding support above the $35,000 to $37,000 zone.