Bitcoin 's recent sell-off successfully tested a key support level that signals more upside ahead.- Katie Stockton of Fairlead Strategies now expects bitcoin to confirm a breakout above $64,900.
- A breakout would signal a long-term bitcoin target of $89,800, representing 53% upside.
$4 weekend $4 likely tested the resolve of those who pitched the popular
The $52,900 has been a key support level monitored by technical analyst Katie Stockton of $4, and the successful weekend test of that level means higher bitcoin prices are likely, according to Stockton.
"A short-term oversold upturn combined with the loss of short-term downside momentum supports a resumption of the intermediate-term uptrend," Stockton explained in a Monday note. Stockton's technical momentum indicators for bitcoin are in bullish territory for the short, medium, and long-term time frames.
With support intact, bullish momentum indicators, and a prevailing uptrend in place, Stockton expects bitcoin to retest the $64,900 resistance level, representing potential upside of about 10% from current levels. But the gains could be even higher if bitcoin decisively breaks out above that level.
"We expect bitcoin to confirm a breakout above $64,900 in its next upmove, which would then target a long-term measured move of $89,900," Stockton said. A move to almost $89,800 represents upside potential of 53% from current levels.
Bitcoin hit a record high of $69,000 in early November, before falling as much as 23% amid $4 It has since surged as much as 11% as risk-on assets including stocks recover some of the losses from Friday's big sell-off.
"Long-term momentum is positive for bitcoin, and the weekly cloud is heading higher into 2022, supporting a long-term bullish bias," Stockton concluded.