By Samuel Indyk
Investing.com – The price of Bitcoin was testing $40,000 to the upside on Thursday morning, having risen around 6% in the last 24 hours.
It is the fourth day out of five where the world’s largest cryptocurrency has posted gains, following declines over the long weekend in the UK and US.
Bitcoin now trades at its highest level since May 27th when it briefly traded back above the psychological $40,000 level but failed to make a close above there.
Some analysts are suggesting the technical picture is favouring a move higher.
“Bitcoin is looking much better technically,” Stack Funds co-founder Matthew Dibb told cryptocurrency website CoinDesk. “However, we would need to see a weekly close above the previous short-term high of $40,904 to regain confidence of a resumed uptrend.”
Other cryptocurrencies have also staged a recovery from some of the recent lows. Dogecoin has received a boost after Coinbase (NASDAQ:COIN) Pro said they will allow trading in the meme-based coin. Trading on the platform is set to begin from today at 17:00BST.
The second largest cryptocurrency by market cap, Ethereum, is trading at its highest level since May 26th but still remains around 35% lower than its all time high hit earlier this year.
On a fundamental level, comments form the Norwegian finance minister may be supporting prices. Jan Tore Sanner said that cryptocurrencies may move past the volatility and experience a period of breakthroughs in the slightly longer term.
However, Sanner added that for now, the cryptocurrency market is “not a market I would recommend consumers to enter.”
The comments appear at odds with some of the recent commentary from government officials in the cryptocurrency space. Many central bankers across the globe have been sceptical about the cryptocurrency industry, including Sanner's compatriot at the Norwegian central bank, governor Oystein Olsen.
“[Bitcoin is] far too resource-intensive, far too costly and most importantly, it doesn’t preserve stability,” Olsen said in March.
At 11:44BST, Bitcoin is trading near its highest level of the day at around $39,300, up 6% in the last 24 hours.