Bitcoin surpasses $41,000 as technical analysts predict bounce

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.

Bitcoin looks attractive to buy dips after falling to test a nearly three-month trend connecting prior lows since early January,” said Mark Newton, managing director and head of technical strategy at Fundstrat. The token “should bounce over the next week, with upside targets at $43,750 up to $44,200 which looks like the first meaningful upside target,” he added.

Both Stockton and Newton offered notes of caution about the sustainability of Bitcoin’s recovery. Newton said the bounce will provably be short-lived, and “movement back above $48,248 would be necessary to expect the start of a new multi-week or multi-month rally had begun.”

Should Bitcoin fall back below $40,000, it would run the risk of sliding to a “secondary support” level of close to $27,200,” according to Stockton. Bitcoin hasn’t traded that low since December