Bitcoin could find its footing if it holds the $34,000 level, a technical analyst says
Bitcoincould find its footing after its recent price decline if it holds $34,000 as support, according to technical analyst Katie Stockton of Fairlead Strategies.
- Oversold conditions are apparent from short and medium term perspectives, according to Stockton.
- If Bitcoin is able to close above its 20-day moving average, it could set up for a surge to its 50-day moving average near $46,000, Stockton said.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Bitcoin's recent price decline could reverse if the cryptocurrency manages to hold a key support level near $34,000, according to a Tuesday note from technical analyst Katie Stockton of Fairlead Strategies.
Bitcoin has tumbled more than 10% this week, in part due to a report that the US government was able to clawback a portion of the $4.4 million ransom payment made by Colonial Pipeline to the hacker group known as DarkSide.
While the price action has been weak in bitcoin since it peaked in mid-April, Stockton noted that it has entered oversold conditions in both the short- and medium-term, which could set the cryptocurrency up for a sizable bounce higher.
Those oversold conditions give bitcoin "a better chance to find its footing," according to Stockton. If bitcoin is able to reclaim its 20-day moving average near $36,000, it would be a short-term bullish development that sets the stage for a surge back to its 50-day moving average, which is currently around $46,000.
A move to those levels represents potential upside of 45%. Bitcoin is currently
But if bitcoin notches a decisive breakdown below $34,000, marked by consecutive daily closes below that level, then weakness could continue to linger. "Short-term momentum has deteriorated," Stockton observed.
"As it stands, we would look for bitcoin to establish a lower high versus April without damaging the longterm uptrend," Stockton concluded.
- A Google employee of 11 years says he and his wife stared at each other in 'disbelief' when they realized they'd both been laid off by the company
- A Google engineer of 8 years says his 'spidey-senses' detected incoming layoffs — and felt 'isolated' when his 'faceless' severance email arrived
- 6 signs that you're in a one-sided relationship and how to find balance
- Rajinikanth issues public notice on infringement of rights, warns legal action
- Govt likely to float global tender for HPV vaccine in April; Merck, Serum Institute may participate
- Finance Ministry to stick to privatisation of already announced CPSEs next fiscal
- 70-plus Indian startups show exit door to 21K techies, more pink slips coming
- Steps taken in subsidence-hit Joshimath inadequate, declare Himalayas eco-sensitive zone, say experts