Bitcoin climbed to above $51,000, its highest level in more than two weeks, boosted by a general uptick in global markets.
The world’s most valuable cryptocurrency has gained 4% in the last two days, peaking at $51,524 in Asian trade on Friday. The second-largest coin, Ether, was trading about $4,100.
Risk appetite has increased in global markets, as indicated by the S& P 500’s record-high closing on Thursday. It’s unclear if dwindling central bank liquidity would pose greater problems for bitcoin demand.
Bitcoin’s last pennant breakthrough predicted a further ascent.
“I consider Bitcoin to be a high-beta risk asset,” said Ross Mayfield, a Baird investment strategy analyst. “When risk appetite rises, it rises dramatically.” And when risk appetite drops, it drops hard. It’s not exactly connected, and that’s an overly simplistic reading, but it’s not a volatility hedge.”
Bitcoin has crossed the top border of a so-called pennant technical pattern and scaled its 20-day moving average, according to technical analysis.
While this means that greater gains are possible, other technical indicators point to the $53,000 to $55,000 range as a potential test of the rally’s resilience.