Katie Stockton, managing director of Fairlead Strategies, a technical research firm, said in a note Tuesday that Bitcoin’s 19% gain over the past five days has helped turn the cryptocurrency’s short-term momentum from negative to positive.
This rally helped end a volatile September where prices fell by as much as 18% before a full recovery could take place. The upside volatility in Bitcoin has helped trigger a weekly “bullish burst” in the stochastic indicator Stockton is tracking.
The rise in risk in Bitcoin has come despite a continued sell-off in equities as investors fret over rising interest rates, continued supply chain disruptions, and Congress’ uncertainty about raising the US debt ceiling. The S&P 500 and Nasdaq 100 have fallen 5% and 7% since the beginning of September, while Bitcoin has gained 2% over the same period, compared to Monday’s closing prices.
Bitcoin’s latest rally is probably not over, however, as Stockton still sees the potential for a 4% increase from its current price of around $51,000 before breaking into minor resistance around $52,900.
Stockton added that if Bitcoin breaks above the $52,900 level, the cryptocurrency will target its all-time high of around $65,000, representing a potential increase of 30%.
Stockton doesn’t think a pullback is imminent for Bitcoin, but if it does, it could slide back to around $46,700, which represents a 7% downside move as a potential support point.
According to Stockton, Bitcoin now has positive momentum in both the short, medium and long term.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.