Bitcoin rises above $41,000 as analysts predict bounce

Bitcoin rises above $41,000 as analysts predict bounce

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Bloomberg

Bitcoin climbed above $41,000, advancing along with equities after China indicated it’s about to loosen monetary policy.

The largest cryptocurrency rose as much as 0.6% to $41,500 on Thursday, gaining for a second day. Katie Stockton, co-founder of Fairlead Strategies LLC, said technical indicators she follows suggest Bitcoin could be due for a short-term bounce to as high as $51,000, assuming it can break through its 200-day moving average, which stands at just above $48,000.

“We expect an oversold bounce and a higher low,” Stockton said.

Bitcoin has been largely stuck in a range of about $35,000 to $45,000 this year. A brief breakout to touch the 200-day moving average in late March was followed by a drop of as much as 19%, as concerns about monetary tightening triggered declines across risk assets. During that period, the token’s correlation with large technology stocks rose to a record.

The tighter link with stocks worked in crypto’s favour on Thursday, as coins broadly tracked advances in Asian stock markets. China’s State Council said it will “step up financial support to the real economy, especially industries and small businesses that have been