Bitcoin pulled back on Friday after rising nearly 10% earlier this week. The cryptocurrency was trading around $32,000 at press time and is up about 2% over the past seven days. Ether (ETH, +4.53%), the world’s second largest cryptocurrency, is holding above $2,000 and is up about 6% over the past week.
Upside momentum is improving, which could keep crypto buyers active into the weekend. Some analysts expect a short-squeeze to push bitcoin (BTC, +4.41%) above the 50-day moving average around $34,000 given oversold conditions on the charts.
“For the first time in many weeks we are seeing bullish signs here and expect Bitcoin to head towards the upper end of the $30,000-$40,000 range,” wrote Pankaj Balani, CEO of Delta Exchange, in an email to CoinDesk.
“On the options front we have seen a good amount of covering between the $35,000-$40000 strikes for the weekly maturity,” Balani wrote. “For the July expiry there is still decent open interest in the $35,000 strike, which should act as a ceiling for BTC for this month.”
Overall, risk sentiment is improving in traditional and crypto markets as concerns about tighter monetary stimulus wane. On Thursday, the European Central Bank (ECB) pledged to keep interest rates lower for longer and adjusted its policy stance to allow for a slight overshoot of the 2% inflation target.