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Bitcoin still has 15% upside with no sell signals on the horizon, technical analyst says

Matthew Fox   

Bitcoin still has 15% upside with no sell signals on the horizon, technical analyst says
  • Bitcoin still has 15% upside after a two-week pullback in the cryptocurrency "matured," according to Fairlead Strategies.
  • The research firm said bitcoin faces resistance at its prior peak of $73,700, and a breakout would target $80,600.
  • "The uptrend looks to be sustainable for the next several months per out long-term indicators," Fairlead Strategies said.

The price of bitcoin could have more room to run after a two-week decline in the cryptocurrency "matured," Fairlead Strategies founder Katie Stockton said in a note on Monday.

The research firm highlighted bitcoin's prior peak of about $73,700 as its next resistance level in the short term.

If bitcoin breaks above that level, it is likely to target its measured move price objective of $80,600, which represents potential upside of 15% from current levels.

Bitcoin traded up 0.71% to $70,388 on Tuesday afternoon, giving it a total market valuation of nearly $1.4 trillion.

The 66% surge in bitcoin so far this year has been driven by strong demand for spot bitcoin ETFs and the anticipation of the upcoming halving event next month.

What's encouraging to Stockton is the fact that during bitcoin's most recent decline, it successfully tested its $64,900 level of support and bounced higher off of that level.

"Today's strength generated an upturn in the daily stochastic, suggesting the pullback has matured in a bullish short-term development," Stockton said.

In the medium term, Stockton said that the weekly MACD indicator is positive while the weekly stochastic indicator is above 80%, both supporting a bullish bias. The MACD and stochastic indicators refer to tools used by technical analysts to gauge the underlying momentum of a security.

And over the long term, Stockton is bullish and sees no technical sell signals on the horizon.

"The uptrend looks to be sustainable for the next several months per our long-term indicators, which point higher with no 'sell' signals," Stockton said.


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