The largest cryptocurrency rose as much as 0.6% to $41,500 on Thursday, gaining for a second day.
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.
“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.
Bitcoin’s struggles have shined a spotlight on so-called altcoins like Cardano, Avalanche and Solana, which have outperformed it recently.
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.