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Bitcoin offers ‘good signs’ as analysts retain $40K BTC price target

Bitcoin offers 'good signs' as analysts retain $40K BTC price target

Bitcoin (BTC) saw five-day highs on May 15 as a rebound continued after the Wall Street open.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

$40,000 “still a magnet” for BTC price

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching $27,666 on Bitstamp.

The pair held strength on hourly timeframes after a weekly close just below the $27,000 mark.

With United States equities in a tight range on the day, crypto analysts looked for cues over where markets might go next.

For Michaël van de Poppe, founder and CEO of trading firm Eight, the outlook was good.

“Bitcoin breaks upwards and tests $27,600. Good signs,” he summarized.

“Weekly timeframe; Holding 200 MA and EMA. I think we’re continuing towards $38,000-42,000 from here.”

Van de Poppe referenced the 200-week moving average and exponential moving average, these seeing a retest late last week after functioning as support for two months.

BTC/USD annotated chart. Source: Michaël van de Poppe/Twitter

“I’m a fan of this breakdown / reclaim,” popular trader Kaleo continued alongside a 4-hour chart of Bybit’s BTC/USD perpetual swaps.

“See this a pretty solid r/r long setup for a potential move back to range highs. And yes, $40K is still a magnet.”

BTC/USD perpetual contract annotated chart. Source: Skew/ Twitter

Examining the state of the BTC/USD Binance order book, meanwhile, monitoring resource Material Indicators concluded that volatility was thus far absent.

Trader Skew added that markets were being “largely” controlled by Binance spot buyers.

“Coinbase spot led this move with strong positive spot delta (market buying),” part of Twitter commentary noted about the day’s uptick.

Dollar retraces part of swift gains

Elsewhere, attention continued to focus on U.S. dollar strength after a week of solid gains.

Related: Sink or swim at $27K? 5 things to know in Bitcoin this week

Whereas these culminated with BTC/USD hitting two-month lows under $26,000, the new week began with the opposite setup — crypto market strength versus a comedown in the U.S. dollar index (DXY).

“It’s amazing how inversely correlated crypto…

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